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Dominique Grubisa

Dominique Grubisa

Using your superannuation to invest in real estate

Using your superannuation to invest in real estate

Did you know that the opportunity to borrow money in your self-managed super fund is potentially ending this coming Federal Election? That means no more superannuation funded real estate investment, here are just a couple of the things threatening it right now.

What are the threats?

1) The banks have closed down lending to superannuation funds

The big four banks have said lending to superannuation funds for real estate investment not just worth their while, explaining that there’s too much compliance, it’s too hard and that they’re no longer going to continue the service.

There are still lenders out there who will do it, you just have to know what their policies are, where to look and how to apply.

2) We’ve got a federal election this year

The Labor government’s policy currently, if elected, will be to cut out loans to superannuation for real estate investment – the policy is designed to put a dampener on the housing market in order to give first home buyers a go.

Rightly or wrongly, it is just a fact that is currently their policy and they’re not resigning from that.

To watch more videos on superannuation, click here: https://youtu.be/1N3lHbuXjf4
Read Dom’s latest interview with news.com.au, Read full article (4 min): http://snip.ly/IfLaborWins

3) TIME

Now, anything could happen, the Labor government may not be elected but if you were thinking of borrowing in your superannuation fund, now is the time to do it. The window is still open and there are lenders in the marketplace currently lending money to super funds for real estate investment.

There are some laws that complicate the process and there are ways it has to be structured with a bare trust, but as long as it’s set up correctly it is still possible and even if Labor wins the election and if banks stop lending to super and the credit becomes less available to super funds. But, once you’ve got your foot in the door it can’t be undone, so any new laws will be grandfathered, that means as of the date that the potential new law is introduced, anything that went on before, that remains as it was.

If you want to explore the possibility of looking into borrowing money in your self managed super fund for superannuation real estate investment before it potentially ends for good, we know the lenders who still do it with rates that are very reasonable – contact us now!

dpminique Gurbisa

Dominique Grubisa

Lawyer, Asset Protection Specialist and Property Educator

Dominique Grubisa is a practicing legal practitioner with over 22 years of legal and commercial experience. She is a property investor and developer, an entrepreneur with businesses in Australia and Southeast Asia, a speaker, educator, writer and published author. You may contact Dominique at info@dginstitute.com.au

This column has been written for general information purposes only. It is not intended as legal, financial or investment advice and should not be construed or relied on as such.

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