Need a simpler SMSF loan and investments?
Welcome to Cube Loans, self managed super fund experts who can help you simplify your investments.
Or simply call us on 📞 1800 774 756
Your local team of SMSF loan specialists
1. Expert brokers on your side
Banks knock back home loan applications every day - often for reasons that could’ve been avoided. At Cube, you’ve got a team of 11 expert brokers on your side, each with their own area of specialty across home loans, investment lending, business finance and more. We’ll help you cut through the red tape and improve your changes of approval.
2. Tailored to your needs
Every loan is different, and what someone else needs is likely not what you need. We search 1000's of loan options to find the right loan for your needs, simply get in touch here.
3. We're here now, and later
Your home loan is an investment that requires ongoing maintenance, including regular check-ups to make sure you have the best home loan rates. We stay ahead of this for you.
4. Local experts, trusted by many
We’re proud to be a local team, with over 200 glowing Google reviews from people who’ve trusted us with their finance journey.
We help our SMSF loan clients by helping remove the stress - and helping you get a better deal. Simply contact Scott or Nevada today if you need help:
Scott Beattie
Founder/Co-Owner · Mortgage Broker
Scott loves helping First Home Buyers and helpings Australians save money through refinancin
Nevada Matthews
Co-Owner · Mortgage Broker
Nevada loves working with property investors and business owners
We compare loan options from over 60 leading lenders to find what suits you
✔ We do the loan rate shopping and negotiations
✔ Access to major banks and specialist lenders
✔ We simplify everything
Cube Loans are a multi-award winning brokerage
What is an SMSF loan and how does it work in Queensland?
A Self-Managed Super Fund (SMSF) loan, also known as a Limited Recourse Borrowing Arrangement (LRBA), enables your SMSF to borrow funds to invest in assets like residential or commercial properties.
In Queensland, this involves establishing a separate trust (bare trust) to hold the asset until the loan is repaid. The lender's recourse is limited to the asset purchased, protecting other assets within the SMSF. This structure allows trustees to leverage their superannuation to invest in property while adhering to strict compliance regulations.
How much can my SMSF borrow to purchase property in Queensland?
Typically, SMSFs can borrow up to 80% of a property's value for residential investments and around 70% for commercial properties.
For example, if you're purchasing a residential property in Brisbane valued at $500,000, your SMSF could borrow up to $400,000, requiring a $100,000 deposit from the fund's existing balance. It's essential to ensure your SMSF has sufficient liquidity post-purchase to cover ongoing expenses and meet lender requirements.
Can my SMSF purchase property from a related party or be used by fund members?
No, SMSFs are prohibited from acquiring residential properties from related parties or allowing fund members and their relatives to live in or rent the property.
However, for commercial properties, your SMSF can purchase from or lease to a related party, provided it's done on an arm's length basis and at market rates. This is particularly beneficial for business owners in Queensland looking to have their SMSF own their business premises.
What are the risks and benefits of using an SMSF loan for property investment in Queensland?
Benefits:
- Potential tax advantages, such as concessional tax rates on rental income and capital gains.
- Diversification of your superannuation portfolio through direct property investment.
- Greater control over investment decisions and asset selection.
Risks:
- Higher costs compared to traditional loans, including setup fees and interest rates.
- Strict compliance requirements; non-compliance can lead to significant penalties.
- Limited liquidity, as property is not easily converted to cash, which can impact the fund's ability to meet obligations.
It's crucial to consult with financial and legal professionals to assess whether an SMSF loan aligns with your retirement strategy and risk tolerance.
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