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SMSF’s, Property & QSuper Members

Why SMSF’s just got even more interesting for QSuper members

just got interesting

Are you a QSuper Member and think you can’t take advantage of an Self Managed Super Fund and borrowing ?

If so you’ll love what I’m about to tell you.

The good news is you can still establish a Self Managed Super Fund.  This can be done either by yourself or with other members, just like anyone else.  The only difference for you, is that you keep your QSuper account as well.

Why ? Because if you’re a QSuper member you know that you can on
ly have your employer contributions directed to that fund.

The QSuper rules say that you can do partial roll-overs (‘move money’) once per year from your QSuper fund to another approved fund. This is how you can contribute to your SMSF.

Of course, this is all subject to you getting full advice from a qualified professional to ensure that this is the right strategy for you and your retirement plans.

That is the key consideration.

So if you’ve taken that step and this is your choice, here’s where this plan just goteven better.

If property is your chosen asset to invest in (or forms part of your investment plan), up until recently it was difficult to obtain a loan with your SMSF, to fund the purchase.  This is due to your employer contributions being deposited into the QSuper account (you don’t have a choice) and not the SMSF.

With SMSF borrowing, also known as Limited Recourse Borrowing Arrangements (LRBA), contributions are one of the main factors considered as income, for repayment of the new loan.

Up until recently, only one lender would allow these contributions to be used or counted, when proving that your fund could afford to borrow.

However, there are now two more lenders who consider this a viable strategy, as long as certain criteria can be met. This gives a better variety of options to QSuper members who have their own SMSF .One of the lenders also offers an offset account inside the SMSF which can be very useful.

Every lender in the SMSF space has their own requirements, so adding two more to the list gives the opportunity to utilise:

  • Broader credit policies
  • Lending niches
  • Better selection of accounts and features
  • Opportunity for different types of properties to be used as security for the loan.

All good news for QSuper members.

About Thrive

For those in the know, property investment can be a great way to build a healthy financial future for your family, without sacrificing your lifestyle today. In her career with some of Australia’s biggest banks, Samantha Bright specialised in helping credit advisors to fund investment properties through superannuation. As a result, Samantha realised that with the right help, everyday Australians could be helped to achieve their dream of owning investment property.

Samantha started Thrive to share her specialist expertise and passion for finance to help people capitalise on an asset that is often overlooked. She works with regular people – mums and dads, small business owners, health workers, administrators, tradies, teachers – people like you and me. People with no specialist expertise in finance who want to create a secure future without missing out on life today. People with moderate super balances and the desire to turn their asset into something solid.

Today’s superannuation regulations make it possible to have greater control over how your super is invested by establishing a self-managed super fund (SMSF). This allows you to opt for property ownership as an investment option. Sounds complicated? It doesn’t have to be. Whether you’re interested in residential or commercial property – perhaps even your own business premises – Thrive works with a team of specialists to make it a simple, easily understood process. You don’t have to know a lot about super, you just need to know the right people.

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