Investor central

Before you buy, there are a few unique factors to keep in mind.

Shelby Waugh 2024-04-05T04:09:46.968Z ・ [ "<p>Have you considered investing in commercial property? With a variety of property types, locations, and leasing options, it could offer a way to diversify your portfolio.</p><p>Here are three questions to get you started.</p><h3><b>1. Do you have savings or equity?</b></h3><p>Healthy savings could be essential to getting the ball rolling as <a href=\"/commercial-loans/\" uuid=\"038239ae-2b40-43cc-bdcc-6ee5618d37a8\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">commercial property loans</a> often require a higher initial deposit. However, if you already own property, you may be able to leverage your available equity in other properties instead.</p><p>Some lenders may have specific loan criteria for commercial properties, so speaking with a <a href=\"/blog/loan-school/how-a-broker-could-be-your-guiding-light-in-2024\" uuid=\"31f5abc0-8429-439b-975a-a66603c6de7d\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">lending expert</a> could make navigating the process smoother.</p>", "<h3><b>2. What are your must-have property features?</b></h3><p>From office blocks to cafes and warehouses, there’s no shortage of variety in commercial property. Some businesses will need specific layouts and features to function, which is good to keep in mind if you plan to rent the property.</p><p>Where you buy is just as important to consider as the property itself. Location plays a big role in determining business foot traffic, accessibility, and visibility, and may affect your rental yield.</p><p>Commercial property values are often influenced by rental returns. So, a property that’s attractive to potential tenants could be a gamechanger.</p><h3><b>3. Are you prepared for the extra responsibility?</b></h3><p>Commercial property comes with some ongoing responsibilities beyond your initial financial commitment. For example, you’ll need to think about extras such as leasing, insurance, and building maintenance. </p><p>Depending on the property, commercial lease terms could be five years or more. If you intend to rent, you’ll need to be prepared for any future repair costs and if property management is needed.</p><p>Your local <a href=\"/about-us/find-an-adviser\" uuid=\"b5701f78-b8e3-452b-8071-ce020698bab0\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">Liberty Adviser</a> may be able to offer support to help manage any overheads more confidently and answer any questions you might have about commercial property loans.</p>" ] min read

Our top three tips to help you take the leap into property investment.

Shelby Waugh 2022-08-01T10:55:00.000Z ・ [ "<p>Investing in property can be a great way to generate passive income and secure your finances for the future.</p><p>Real estate has become a strong asset class over the last few decades. However, it is a daunting arena to jump into. Knowing when and where to start can be difficult, so here are three signs you are ready to buy your first investment property.</p><h3><b>1. You have savings or equity</b></h3><p>Money for a deposit is often the biggest hurdle for any budding property investor. However, if you’re already a homeowner, then you may be able to leverage the equity available in your current home to buy a new investment property. </p><p>While some lenders prefer to see larger deposits, there are lenders such as Liberty who provide <a href=\"/home-loans/low-doc-investment-loans\" uuid=\"71352589-e22c-46cc-a754-cff4f2377575\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">investment loans</a> to eligible customers with just a 5% deposit.</p>", "<h3><b>2. You have done your research</b></h3><p>There are many factors to consider when choosing the right investment, and property is no different. Making sure your asset choice will pay off in the long run is vital. A few factors to consider are the area’s growth potential, the strength of the local economy and property maintenance needs.</p><p>Even if you are planning to <a href=\"/blog/investor-central/simple-renovations-to-build-home-equity\" uuid=\"dc4b6272-a58c-44e0-a9ec-4ed5c7ad9c81\" target=\"_blank\" linktype=\"story\" story=\"[object Object]\">renovate and sell</a>, you will still need to consider the budget, tradespeople and time management that come along with it. Double checking you understand every aspect of your investment will save you in the long run.</p><h3><b>3. You are ready for extra responsibility</b></h3><p>Buying a home is a big decision regardless of whether it is your first, fifth or fiftieth. It is not just the financial commitment, it is also choosing the right property management, the right property and the right <a href=\"https://www.liberty.com.au/mortgage-broker\" target=\"_blank\" linktype=\"url\">broker</a>.</p><p>Assembling a body of trusted professionals to help you build and maintain your portfolio will make all the difference. Your team should involve real estate, <a href=\"https://www.liberty.com.au/mortgage-broker\" target=\"_blank\" linktype=\"url\">lending</a> and property maintenance to ensure you have all your bases covered.</p><p>A Liberty Adviser can help you understand more about how to take the next step into property investment. To find out more, contact a <a href=\"https://www.liberty.com.au/mortgage-broker\" target=\"_blank\" linktype=\"url\">Liberty Adviser</a> today.</p>" ] min read

The right finance option can give your business more flexibility.

Laura Orchard 2022-02-06T00:00:00.000Z ・ [ "<p>Even with plans in place to manage your business finances, sometimes things get tight.</p><p>When you need to bridge a cash flow gap or make the most of new opportunities, a <a href=\"/business-loans/line-of-credit-business-loans\" uuid=\"ff73e566-161a-4c85-a179-7fddd3f1d1b5\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">business line of credit facility</a> can be a handy solution to keep things moving forward.</p><p>Here’s how a line of credit can offer greater ongoing financial flexibility.</p><h3><b>What is a business line of credit?</b></h3><p>A line of credit acts as an extra cash buffer and gives your business easy access to funding up to a certain limit.</p><p>Unlike a traditional business loan, businesses typically only access the portion of funds they need from a line of credit.</p><p>Once you repay your withdrawal (known as a drawdown), your line of credit is replenished and can be tapped again for future expenses.</p><p></p>", "<h3><b>What can I use a line of credit for?</b></h3><p>A <a href=\"/business-loans/line-of-credit-business-loans\" uuid=\"ff73e566-161a-4c85-a179-7fddd3f1d1b5\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">line of credit</a> is an ongoing solution that can be used for almost any business purpose – including activities that help you manage daily cash flow.</p><p>Common uses for a business line of credit include paying staff wages, covering invoices, buying urgent stock, taking care of unexpected expenses and paying suppliers.</p><h3><b>What type of businesses use a line of credit?</b></h3><p>Line of credit facilities are an increasingly popular<a href=\"/business-loans/\" uuid=\"de30ecb9-5fc6-46bc-9754-bb64ab4acb28\" target=\"_blank\" linktype=\"story\" story=\"[object Object]\"> </a><a href=\"/business-loans/\" uuid=\"de30ecb9-5fc6-46bc-9754-bb64ab4acb28\" target=\"_blank\" linktype=\"story\" story=\"[object Object]\"><span class=\"\">business</span></a><a href=\"/business-loans/\" uuid=\"de30ecb9-5fc6-46bc-9754-bb64ab4acb28\" target=\"_blank\" linktype=\"story\" story=\"[object Object]\"> finance solution</a> for small business, largely due to their great flexibility.</p><p>If you own a seasonal business facing quiet months, or want to invest in new technology, equipment, or inventory to help grow your business, a line of credit could be useful.</p><h3><b>Speak to an expert</b></h3><p>Whether it’s used to balance cash flow or for growth initiatives, a line of credit could give your business the ongoing access to funds it needs.</p><p>Even if you have a less-than-perfect <a href=\"/blog/biz-wiz/how-healthy-is-your-business-credit-score\" uuid=\"0f50d3de-141c-4ab3-9dab-edeb9260f641\" target=\"_blank\" linktype=\"story\" story=\"[object Object]\"><span class=\"\">business</span></a><a href=\"/blog/biz-wiz/how-healthy-is-your-business-credit-score\" uuid=\"0f50d3de-141c-4ab3-9dab-edeb9260f641\" target=\"_blank\" linktype=\"story\" story=\"[object Object]\"> credit score</a>, speak with a <a href=\"/about-us/find-an-adviser\" uuid=\"b5701f78-b8e3-452b-8071-ce020698bab0\" target=\"_self\" linktype=\"story\" story=\"[object Object]\"><span class=\"\">Liberty</span></a><a href=\"/about-us/find-an-adviser\" uuid=\"b5701f78-b8e3-452b-8071-ce020698bab0\" target=\"_self\" linktype=\"story\" story=\"[object Object]\"> Adviser</a><span class=\"\"> today</span> for help to find a solution that matches your needs. You might be surprised at the options available to you.</p><p></p>" ] min read

Buying your first property as an investment can have its advantages.

Laura Orchard 2021-10-12T00:00:00.000Z ・ [ "<p>Getting onto the property ladder and becoming a homeowner has long been considered the great Australian dream.</p><p>But the first property you buy doesn’t have to be one you live in – it could be an investment property instead.</p><p>Wondering which path is right for you? We look at some important factors to consider when deciding between buying a first home or an investment.</p><h3><b>Buying an investment property</b></h3><p>Rather than delaying your property plans to save for your forever home, you could purchase a less expensive property as an investment.</p><p>It may help you get onto the property ladder sooner so you can start building equity, generate income from your investment and take advantage of any tax benefits available.</p><p>Keep in mind that there are risks with investing and it’s not the right option for everybody. As you’ll need to pay both your loan repayment and rent each month, make sure you crunch the numbers first.</p>", "<h3><b>Buying your first home</b></h3><p>The comfort of homeownership, stability and the freedom to renovate are just some benefits to buying and living in your first home. Not to mention, paying off the house you’re living in can be emotionally rewarding.</p><p>To help make it happen, there are several <a href=\"/blog/loan-school/a-guide-to-first-home-buyer-grants\" uuid=\"f429dfaa-304e-4a58-9bf7-e739ea4f9c2f\" target=\"_blank\" linktype=\"story\" story=\"[object Object]\">government supports</a> available and you may be eligible for stamp duty reductions and other concessions.</p><p>On the other hand, you may have to compromise on the location, size or type of home you purchase due to budget constraints. And if you’re not ready to put down roots, buying your first home may not be the right move yet.</p><h3><b>Ask an expert for help</b></h3><p>Deciding between your first home and an investment property will depend on your personal circumstances, where you want to live, and your financial goals.</p><p>A Liberty Adviser can help you explore the finance options available to you and find the right loan for your situation. To find out more, contact a <a href=\"/about-us/find-an-adviser\" uuid=\"b5701f78-b8e3-452b-8071-ce020698bab0\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">Liberty Adviser</a> today.</p>" ] min read

Looking to add value to your home? Here are some easy upgrades that can help.

Kellie George 2021-07-30T00:00:00.000Z ・ [ "<p>Whether you’re <a href=\"/blog/loan-school/upgrading-your-property-in-a-hot-market\" uuid=\"675979f4-4419-4a6a-b9d1-da2d5a6bee6b\" target=\"_blank\" linktype=\"story\" story=\"[object Object]\">planning to sell</a> or <a href=\"/blog/loan-school/the-real-cost-of-refinancing\" uuid=\"5236449d-afed-404f-b92d-42c55ad5bff9\" target=\"_blank\" linktype=\"story\" story=\"[object Object]\">thinking about refinancing</a>, renovating can be a great way to build equity within your home.</p><p>With a few strategic upgrades, you can significantly <a href=\"/blog/free-thinking/four-easy-ways-to-increase-your-property-value\" uuid=\"b2d256a0-a6e7-44e6-8839-7c69e145d492\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">increase your home’s value</a> - and get a great return on your investment.</p><h3><b>Give your landscaping some love</b></h3><p>If you aren’t a natural green thumb, there’s a chance your landscaping could be lacking. And it could be a good idea to give your garden an overhaul.</p><p>A professional landscaper can help you create a beautiful garden to improve the appearance of your home.</p><p>Or, if you’re <a href=\"/blog/free-thinking/use-your-downtime-to-upgrade-your-home\" uuid=\"c7caaaf3-d5a7-4520-8e52-7a6a67a8fc45\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">planning to DIY</a>, local suppliers can offer advice and guide you towards the best options for your property.</p><p></p>", "<h3><b>Build an outdoor living area</b></h3><p>If you have space in your backyard, another simple way to add value to your home is to build an outdoor living area.</p><p>By doing so, you are essentially adding an extra living space which will be an added feature when time comes to have your home valued.</p><p>Don’t forget to seek the relevant permits from your local council.</p><h3><b>Add a new ensuite</b></h3><p>As a highly sought-after feature, adding an ensuite or powder room can be a great way to build equity.</p><p>While this is a more substantial renovation, a new ensuite or powder room can give the value of your home a serious boost.</p><p>It will also help your home appeal to a broader pool of buyers if you decide to sell.</p><p>To help finance your renovations, Liberty has a range of flexible <a href=\"/personal-loans/\" uuid=\"437f4c2c-150f-4efe-8146-8ff1c14d686f\" target=\"_self\" linktype=\"story\" story=\"[object Object]\"><span class=\"\">personal</span></a><a href=\"/personal-loans/\" uuid=\"437f4c2c-150f-4efe-8146-8ff1c14d686f\" target=\"_self\" linktype=\"story\" story=\"[object Object]\"><u> loan</u></a><span class=\"\"> options</span>. For support to find the loan type that’s right for you or to learn more, contact a <a href=\"/about-us/find-an-adviser\" uuid=\"b5701f78-b8e3-452b-8071-ce020698bab0\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">Liberty Adviser</a> today.</p><p></p>" ] min read

A guide to getting the funds you need to boost your business.

Heidi Armstrong 2021-05-27T00:00:00.000Z ・ [ "<p>Whether you’re an existing business owner or trying to finance a start-up, <a href=\"/business-loans/\" uuid=\"de30ecb9-5fc6-46bc-9754-bb64ab4acb28\" target=\"_blank\" linktype=\"story\" story=\"[object Object]\">business loans</a> and <a href=\"/commercial-loans/\" uuid=\"038239ae-2b40-43cc-bdcc-6ee5618d37a8\" target=\"_blank\" linktype=\"story\" story=\"[object Object]\">commercial property loans</a> can give you the funds to kick-start or keep growing your venture.</p><p>As more Aussies opt to work for themselves or start their own ventures, the demand for business loans and commercial property loans is rising. Established businesses and start-ups alike often need funds for working capital, equipment, leases, acquisitions, advertising, company vehicles, and commercial property mortgages.</p><p>Nowadays, business owners have access to a variety of loan types to fit their specific needs. Whether you need a few thousand dollars, a few hundred thousand dollars or even a few million dollars, the right business or commercial loan can keep your business growing without disrupting your operations.</p><h3><b>How do I get a business loan in Australia?</b></h3><p>If you’re seeking a business loan in Australia, your first step is to find an experienced <a href=\"/about-us/find-an-adviser\" uuid=\"b5701f78-b8e3-452b-8071-ce020698bab0\" target=\"_blank\" linktype=\"story\" story=\"[object Object]\">business finance broker</a>. They will have access to a broad range of lenders and will know which ones have an appetite for your type of business. This can save you time and money, rather than trying to compare different lenders and their products on your own.</p><p>And it’s important to understand your terminology. Often, people interchange the terms “business loan” and “commercial loan”, however, there are some slight differences between them. When brokers talk about a <a href=\"/commercial-loans/\" uuid=\"038239ae-2b40-43cc-bdcc-6ee5618d37a8\" target=\"_blank\" linktype=\"story\" story=\"[object Object]\">commercial loan</a>, they are usually referring to a mortgage on commercial real estate. Borrowers may seek a commercial mortgage for premises in which to run their business or from professional investors seeking commercial property to provide rental income and capital gain over time.</p><p>In contrast, <a href=\"/business-loans/\" uuid=\"de30ecb9-5fc6-46bc-9754-bb64ab4acb28\" target=\"_blank\" linktype=\"story\" story=\"[object Object]\">business loans</a> don’t always need commercial property security and can be used to cover the actual expenses of running a business. Owners may take out a business loan to cover employee wages, leases on offices or equipment, business overhead expenses, advertising, acquisitions, business vehicles, and all manner of other expenses.</p><p>Business owners may need a commercial property loan, a business loan, or both. When you work with a <a href=\"/about-us/find-an-adviser\" uuid=\"b5701f78-b8e3-452b-8071-ce020698bab0\" target=\"_blank\" linktype=\"story\" story=\"[object Object]\">business finance broker</a>, they can assess your situation and go over all your options with you.</p><h3><b>What is an unsecured business loan?</b></h3><p>An unsecured business loan is a loan that does not require real estate collateral for approval. An unsecured loan is made solely on the strength of the borrower’s credit and financial standing. With an unsecured loan, the risk to the lender is higher, because they can’t rely on an owned asset to make up for any losses if the borrower fails to repay. For this reason, interest rates on unsecured business loans tend to be higher.</p><p>Even if a borrower can get an unsecured business loan, they will still likely have to sign a personal guarantee. The personal guarantee allows the lender to pursue repayment from the borrower’s personal assets if there is a loan default. Unsecured business loans are usually for lower amounts and made to borrowers with a consistent earnings history and good cash flow.</p><h3><b>What is a secured business loan?</b></h3><p>A secured business loan or a commercial property loan uses collateral – usually in the form of residential or commercial real estate to back the loan. Secured business or commercial loans involve less risk to the lender because if the borrower doesn’t make repayments, the lender can rely on the security property. This means that secured business or commercial loans usually offer higher loan amounts and lower interest rates.</p><p>Many secured business loans have commercial real estate security. For example, if a doctor owns the building that the medical practice operates from, they might leverage the equity on the commercial property as security for a loan to update their medical equipment.</p><p>Some business owners have no need for an actual storefront or office location, or they rent or lease their commercial space. This does not necessarily mean they can’t get a business loan for operating expenses or growth opportunities. Some business owners put up their residential home as collateral for a secured business loan. Others don’t own any commercial or residential real estate but have strong enough business financials and liquid assets to get an unsecured loan with a personal guarantee.</p>", "<h3><b>What is a low doc business loan?</b></h3><p>Low doc business loans are for qualifying business owners who don’t have all the documentation typically required to get a business loan. Many entrepreneurs and independent contractors need funds for start-up expenses. So, they don’t have several years of business tax returns or proof of consistent cash flow on Business Activity Statements. But this doesn’t necessarily mean these types of applicants can’t get a business or commercial property loan.</p><p>Traditional banks and credit unions may be less willing to lend to low-doc applicants. However, there are plenty of specialty lenders who have the expertise and resources to assess a borrower’s financial strength using alternative means. When applying for a low doc business loan or a low doc commercial loan the lender will likely require real estate as security. Because low doc loans are a higher risk to the lender, they will want to ensure they have sufficient security to recover any losses if the borrower is unable to meet future loan repayments.</p><p>If you need a <a href=\"/business-loans/\" uuid=\"de30ecb9-5fc6-46bc-9754-bb64ab4acb28\" target=\"_blank\" linktype=\"story\" story=\"[object Object]\"><u>business loan</u></a> for a start-up, it always helps if you have a strong and lengthy earnings history of working somewhere else in the same field. If you already own a business and need a loan for working capital or an acquisition, you may still be eligible, even if you don’t have recent tax returns.</p><p>Lenders specialising in business loans understand that owners have unique tax considerations. Their income may not be as easy to verify as someone who gets regular payslips. As long as your Business Activity Statements and personal bank accounts show strong cash flow and no major credit issues, you may be able to get a business loan without the traditional documentation.</p><h3><b>Can I get a business loan to buy a car?</b></h3><p>Yes, you can get a business loan to buy a car. More and more modern businesses offer home delivery or involve services that require employees to travel as part of their job. Business car loans allow business owners to finance work vehicles under the umbrella of the business. This spares them the potential credit and personal liability risk of taking out a business car loan in their own name. Business loans for work vehicles can also be advantageous for tax purposes, since depreciation, loan interest, and insurance premium deductions can offset tax liability.</p>", "<h3><b>Can I get a commercial loan with my SMSF?</b></h3><p>If you have a self-managed super fund, you may be able to use it to take out a mortgage on commercial property. Some SMSF members buy residential or commercial properties to help diversify their investment portfolio. Buying residential or commercial real estate with SMSF funds allows members to collect rental income, build equity, and capture capital gains if they sell the property. If you’re not buying a home for you or a family member to live in, you can use your SMSF to take out a mortgage the usual way.</p><p>For commercial property purchased with an SMSF, buyers are generally also allowed to use the property – provided it’s being used exclusively for business purposes. Whether held personally or in an SMSF, mortgages on commercial property tend to have slightly higher interest rates than those on residential property. And while the mortgage’s term is usually shorter, some lenders will go up to 30 years.</p><h3><b>Can I get a business loan if I have bad credit?</b></h3><p>You can still get a business loan if you have bad credit. However, these borrowers will usually be subject to higher interest rates and will need collateral to secure the loan. Unsecured business loans are hard to get unless you have an above-average credit history. If you’re seeking a business loan and your credit score is on the low side, you’ll need to present a good case to your lender.</p><p>There are specialty lenders who may still approve you if you can show that your financial situation has improved, and you can service the loan. You’ll want to show a solid record of consistent business revenue, or if you’re starting your own business, a similarly solid history of earnings in the same industry.</p><p>The bottom line is that you want to show the lender that you’re a risk worth taking and that repayment problems are unlikely to recur. Mainstream banks and credit unions are less likely to approve business loans to applicants with low credit scores. But a business finance broker will know which lenders may still consider you and tell you what documentation will help your chances.</p>", "<h3><b>How do I apply for a business loan?</b></h3><p>Applying for a business loan doesn’t need to be daunting. A good starting point is to seek out the services of an experienced <a href=\"/about-us/find-an-adviser\" uuid=\"b5701f78-b8e3-452b-8071-ce020698bab0\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">business finance broker</a>. You want someone who understands what you’re trying to achieve and can identify lenders that have an appetite to back your situation.</p><p>A good business finance broker will guide you through the application process and help ensure your loan application is approved. Remember that each time you apply for credit, a notation is made on your credit file and this impacts your credit score. For this reason, it’s important that whoever you decide to formally apply with has an appetite for your loan and circumstances.</p><p>A good business broker should be able to give examples of how they have helped other business customers in the past. Do your research online to find a broker that can help find a finance solution that suits you. Contact a <a href=\"/about-us/find-an-adviser\" uuid=\"b5701f78-b8e3-452b-8071-ce020698bab0\" target=\"_self\" linktype=\"story\" story=\"[object Object]\"><u>Liberty Adviser</u></a> to see how they can help you with a <a href=\"/business-loans/\" uuid=\"de30ecb9-5fc6-46bc-9754-bb64ab4acb28\" target=\"_self\" linktype=\"story\" story=\"[object Object]\"><u>business loan</u></a> or <a href=\"/commercial-loans/\" uuid=\"038239ae-2b40-43cc-bdcc-6ee5618d37a8\" target=\"_self\" linktype=\"story\" story=\"[object Object]\"><u>commercial loan</u></a> today.</p>" ] min read

A self-managed super fund loan can help you buy a commercial or residential investment property to grow your nest egg.

Heidi Armstrong 2021-04-29T19:57:00.000Z ・ [ "<p>Australians love investing in real estate – and a self-managed super fund (SMSF) loan can make the benefits of investment property ownership a reality for many borrowers. Whether a commercial or residential property, an <a href=\"/smsf-loans/\" uuid=\"beccf612-b9ba-4ec8-bb96-a86773bbb408\" target=\"_blank\" linktype=\"story\" story=\"[object Object]\">SMSF loan</a> can play an important role in your retirement plans.</p><h3><b>What is a self-managed super fund?</b></h3><p>An SMSF is a private super fund that you manage yourself. SMSFs provide greater flexibility and allow investors to hold a range of assets including shares, term deposits, bonds, investment properties, cash and unlisted assets.</p><p>A successful SMSF can be highly rewarding, but it can also come with greater risk than a regulated super fund. Managing an SMSF also requires some work and it’s important to seek guidance from a trusted financial adviser.</p><p>SMSFs can have up to four members and require their own separate Tax File Number (TFN), Australian Business Number (ABN) and transactional bank account. Because SMSFs are a type of trust, you must designate a trustee to have authority over the investment strategy, administrative tasks and financial statements.</p><p></p>", "<h3><b>What is a self-managed super fund loan?</b></h3><p>SMSF loans or Limited Recourse Borrowing Arrangements (LRBAs) support SMSF trustees to borrow money to buy an investment property they may not be able to afford to buy through their SMSF outright.</p><p>After the purchase, ownership of the property is held in a custodian trust until the loan is repaid. At that point, the SMSF acquires the title. Throughout the life of the loan, SMSF members have a beneficial interest in the property. Any income generated is reinvested into the SMSF to help repay the loan or increase the value of the fund.</p><p>While <a href=\"/smsf-loans/\" uuid=\"beccf612-b9ba-4ec8-bb96-a86773bbb408\" target=\"_blank\" linktype=\"story\" story=\"[object Object]\"><u>SMSF loans</u></a> can be used to buy either commercial property or residential property, it must pass the tax office’s sole purpose test. This means the trustee must be able to prove that the sole purpose of buying the property is to provide retirement income.</p>", "<p><span class=\"\">A successful SMSF can be highly rewarding, but it can also come with greater risk than a regulated super fund.</span></p>", "<h3><b>What is a self-managed super fund loan application?</b></h3><p>An SMSF loan application is the document you will need to complete to get your loan approved. As part of the process, each lender may require different documentation, but most will want copies of the SMSF trust deed, the custodian trust deed and the contract of sale.</p><p>You will also need to show proof of adequate personal income and you may need to compile SMSF bank statements, tax returns, audit certifications and rental estimates. This information helps the lender to ensure that everything is in order and that you can afford to make the necessary loan repayments.</p>", "<h3><b>How much can I get from an SMSF loan?</b></h3><p>The amount you can borrow in an <a href=\"/smsf-loans/\" uuid=\"beccf612-b9ba-4ec8-bb96-a86773bbb408\" target=\"_blank\" linktype=\"story\" story=\"[object Object]\"><u>SMSF loan</u></a> will depend on your financial situation as well as your lender and their policies. Some specialty lenders offer SMSF loans from $100,000 ranging up to $4,000,000.</p><p>You might need to maintain a minimum amount within your SMSF after the property sale. This amount will vary depending on your individual circumstances.</p><p>Some SMSF lenders may also require you to keep a certain percentage of liquid cash. Depending on your lender there is a possibility that they will agree to waive this if the initial deposit is large enough or if the rental income covers the loan repayments.</p>", "<h3><b>What are the SMSF loan requirements?</b></h3><p>Most SMSF loans have four main requirements:</p><ol><li><p>The property must be for the sole purpose of providing retirement benefits or death benefits to SMSF beneficiaries</p></li><li><p>If residential, the property must not be acquired from a member of the SMSF or any related party of a member</p></li><li><p>If residential, the property must not be lived in or rented by a member of the SMSF or any related party of a member</p></li><li><p>The property must not be a single acquirable asset</p></li></ol><p>If you are purchasing a commercial property, it may be bought from or leased by SMSF members. This must be done at fair market value and the property must only be used for business purposes.</p>", "<h3><b>Are there any SMSF loan risks or downsides?</b></h3><p>Under limited recourse property loans, a lender cannot recoup losses from any other assets held in the SMSF. They can only make a claim against the property, which is held in a custodian trust.</p><p>While this provides borrowers with some level of protection, it is important to do your research before diving in. A licensed financial adviser can help you to ensure you understand your obligations and assess whether an SMSF loan aligns with your long-term investment strategy.</p>", "<h3><b>What is a related party loan?</b></h3><p>A related party loan is when members of an SMSF lend money to the SMSF in their own personal or corporate capacity, rather than getting a loan from a bank.</p><p>Usually, an SMSF member will get a line of credit in their own name and lend that money to the SMSF to pay the mortgage. Related party loans are often more cost-effective because they can eliminate the need to set up a corporate trustee or a custodian trustee.</p><p>It’s important to note that the Australian Tax Office requires that these related party loans are on an arms-length basis and with commercial terms. Essentially, this means the member must charge interest and set clear terms and a repayment schedule in the same way that a lender would.</p>", "<h3><b>What does LVR mean?</b></h3><p>Loan-to-value ratio (LVR) refers to how much you are borrowing compared to the value of the property. A larger deposit means you will have a lower LVR and a lower LVR means less risk to the lender.</p><p>Depending on your lender, the maximum loan to value ratio for SMSF loans may vary.</p><p>Some lenders offer up to 80% LVR loans for certain types of properties which means they will lend up to 80% of the investment property’s value with the remaining amount paid through your SMSF.</p>", "<h3><b>Can I refinance with an SMSF loan?</b></h3><p>While it’s possible to refinance an existing SMSF loan, few lenders provide <a href=\"/smsf-loans/\" uuid=\"beccf612-b9ba-4ec8-bb96-a86773bbb408\" target=\"_blank\" linktype=\"story\" story=\"[object Object]\">SMSF loans</a> for this purpose. As a specialist lender, Liberty has the freedom and capacity to make loans that traditional banks cannot accommodate – including SMSF loan refinances.</p><p>Many borrowers have taken out SMSF loans when interest rates were higher, or their financial situation was different. In these cases, it is worth looking into refinancing your SMSF loan to see if there are better options for your individual needs.</p>", "<h3><b>Do I need an SMSF loan broker?</b></h3><p>If you have an SMSF and are considering taking out a mortgage to buy an investment property, your first step should be to seek advice from your financial adviser or accountant.</p><p>If you decide to go ahead, a <a href=\"/about-us/find-an-adviser\" uuid=\"b5701f78-b8e3-452b-8071-ce020698bab0\" target=\"_self\" linktype=\"story\" story=\"[object Object]\"><u>mortgage broker</u></a> can help you find the right SMSF loan for your needs and help explore what other lending options may be available to you. And, if you’re new to SMSF lending, a broker can help to simplify the process and answer any questions that may pop up along the way.</p>" ] min read

Statistically, women are more likely to retire with less – but there are ways that you can close the gap.

Kellie George 2021-03-08T21:57:00.000Z ・ [ "<p>When it comes to retirement savings, women are likely to retire with significantly less in their superannuation funds than their male counterparts.</p><p>However, there are simple ways to boost super savings that you might want to consider.</p><h3><b>Make regular contributions</b></h3><p>While your employer is required to contribute to your super on your behalf, it’s a good idea to start making regular contributions of your own.</p><p>Thanks to compounding interest, the earlier you start, the more you save – and even a modest monthly contribution can have a powerful impact on your long-term savings.</p><p>If you’re self-employed, you don’t have to pay yourself super, but it’s still important to think about your financial future. And you might even be eligible for a government co-contribution.</p><h3><b>Consolidate your accounts</b></h3><p>If you have switched jobs over the years, you may have ended up with multiple super accounts, which means you could be paying more in fees.</p><p>By consolidating your super into one account, you can reduce your fees and potentially increase the amount of interest you earn.</p>", "<h3><b>Leverage your self-managed fund</b></h3><p>If you have a self-managed super fund (SMSF), you may be able to leverage the power of your super with an <a href=\"/smsf-loans/\" uuid=\"beccf612-b9ba-4ec8-bb96-a86773bbb408\" target=\"_blank\" linktype=\"story\" story=\"[object Object]\">SMSF loan</a>.</p><p>An SMSF loan is not limited to the size of your super and can help you build your portfolio when investing in residential or commercial property.</p><p>To find out more about SMSF loans, contact a<a href=\"/about-us/find-an-adviser\" uuid=\"b5701f78-b8e3-452b-8071-ce020698bab0\" target=\"_blank\" linktype=\"story\" story=\"[object Object]\"> </a><a href=\"/about-us/find-an-adviser\" uuid=\"b5701f78-b8e3-452b-8071-ce020698bab0\" target=\"_blank\" linktype=\"story\" story=\"[object Object]\"><span class=\"\">Liberty</span></a><a href=\"/about-us/find-an-adviser\" uuid=\"b5701f78-b8e3-452b-8071-ce020698bab0\" target=\"_blank\" linktype=\"story\" story=\"[object Object]\"> Adviser</a> today.</p>" ] min read

Find out if you're eligible...

Kellie George 2020-06-17T00:00:00.000Z ・ [ "<p>The federal government recently announced the HomeBuilder grant to encourage Australians to build a new home or complete a major renovation on their existing home.</p><p>Designed to stimulate the economy and boost the construction sector, the grant offers $25,000 to applicants who meet the eligibility requirements.</p><h3><b>Who is eligible?</b></h3><p>While it may seem like a good opportunity to save some cash, it’s important to ensure that you are eligible before making any commitments.</p><p>To access the grant, you must sign your building or renovation contract between 4 June and 31 December 2020 and construction must begin within three months of the contract date.</p><p>If you are applying alone, you must be earning $125,000 per year or less. If you are applying as a couple, your combined income is capped at $200,000.</p><p></p>", "<h3><b>How can I use the grant?</b></h3><p>The grant can help fund new builds valued up to $750,000 including land or major renovations costing between $150,000 and $750,000.</p><p>For renovations, the pre-renovation value of the property must be below $1.5 million, and the property must be your principal place of residence rather than a holiday home or investment property.</p><p>There are also some other exclusions. While the grant can help cover bathroom and kitchen renovations as well as knockdown rebuilds, the renovations must improve the liveability of the property.</p><p>So, if you were planning to add a pool or a detached garage, you’ll need to fund this separately.</p><h3><b>Is there other support available?</b></h3><p>HomeBuilder complements existing state and territory grants and concessions, like <a href=\"/blog/loan-school/help-for-first-home-buyers\" uuid=\"3cea7e9c-9e88-4114-a755-c5248c42ed4c\" target=\"_blank\" linktype=\"story\" story=\"[object Object]\">the First Home Loan Deposit Scheme.</a></p><p>If you do not meet the eligibility requirements, there are options available.</p><p>A <a href=\"/about-us/find-an-adviser\" uuid=\"b5701f78-b8e3-452b-8071-ce020698bab0\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">Liberty Adviser</a> can help you find the right lending solution to fund your new build or home</p><p></p>" ] min read

The outlook for SMSF lending is brighter than ever.

Kellie George 2019-12-05T00:00:00.000Z ・ [ "<p>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.</p><h3><b>SMSF loan basics</b></h3><p>SMSF loans can help customers buy of residential or commercial property in much the same way a traditional investment loan works.</p><p>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.</p><p></p>", "<p>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.</p><h3><b>Chance to diversify</b></h3><p>For brokers, diversifying into SMSF lending gives access to a wider pool of customers and new revenue streams.</p><p>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.</p><h3><b>How to get started</b></h3><p>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.</p><p>To learn more about SMSF lending solutions, <a href=\"/about-us/contact-us\" uuid=\"84f0ed59-ce75-4632-9633-d292607aaf75\" target=\"_self\" linktype=\"story\" story=\"[object Object]\">reach out to Liberty</a> today.</p>" ] min read