Borrowing through a SMSF
Have you ever considered SMSF borrowing to purchase an investment property? You can. By using the existing cash available in your SMSF or even borrow against those funds as you would as an individual to purchase that investment property or business premises or shares for that matter. We can explain the complex process required to borrow through an SMSF including:
- Bare Trust and Trustee
- Which bank to approach to borrow
- We can recommend your legal team
The advantages of borrowing through an SMSF include a Capital Gains Tax (CGT) rate of 10% while working, and 0% when retired. Compare that to a potential tax rate of 24% when investing in your own name.
SMSF borrowing to purchase an investment property
Yes, there is the disadvantage. The funds are locked away until you retire, but this strategy can form a major part of your entire retirement plan!