Self-managed super funds (SMSFs) make up approximately 30% of superannuation assets in Australia. And for customers wanting to diversify their retirement investments, buying property in super is a popular option.
SMSF loan basics
SMSF loans can help customers buy of residential or commercial property in much the same way a traditional investment loan works.
Like an investment loan, SMSF loans require a deposit, which will vary by lender. An example of this is Liberty’s SuperCredit loan, which lends up to 80% of the residential investment property value.
At a minimum, the SMSF needs funds to cover the deposit as well as any associated costs. The lender will also consider any proposed rental income and review payslips or tax returns to ensure the SMSF can meet future loan repayments.
Chance to diversify
For brokers, diversifying into SMSF lending gives access to a wider pool of customers and new revenue streams.
Because customers require independent financial advice via accountants or financial planners to establish their SMSF, there is also an opportunity for brokers to build referral partnerships.
How to get started
If you’re a proactive broker, reaching out to existing customers is a good way to get started. You may find that some customers already have SMSFs set up and want to start investing.
To learn more about SMSF lending solutions, reach out to Liberty today.