Your SMSF can act as a cushion in times of emergency that you can borrow from the fund so long as you meet the bank’s minimum requirements. You’ll be allowed to borrow up to 70% of the balance. Additionally, you should be able to service the loan from within the SMSF.
Purchasing real estate within your SMSF is an altogether personal decision. Here at Australian Financial & Mortgage Solutions, we can offer advice about the type of properties you can invest in and those you cannot purchase. However, the final decision rests with you as the investor.
The bank is also able to restrict the type of properties you can purchase inside an SMSF. In order to go on and make a purchase, most banks require that the SMSF have some sort of liquid assets – a minimum of 10% of the total fund assets. Not sure about how to set up an SMSF? Book an appointment with our team.