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SMSFs explained: How investors are using super to maximise their portfolio
The discussion opens on the current lending landscape, with debt-to-income (DTI) ratios potentially limiting borrowing, though Le notes the property market remains active as investors pursue pre-approvals via SMSFs, personal names, or trusts.
Loisance explains the mechanics of SMSF lending, including serviceability and liquidity tests that require a portion of the loan to remain in liquid assets post-settlement, though some lenders are more flexible.
The trio highlights key SMSF lenders, including Granite, BMM, AMP, RedZed, and Firstmac, noting their differing criteria and levels of conservatism.
Loisance and Le emphasise the importance of understanding serviceability versus DTI ratios to maximise borrowing potential.
They advise consulting financial planners and accountants to navigate contributions, liquidity requirements, and regulatory rules effectively.
Finally, while SMSFs offer a way to continue property investment and strategies like leasing commercial properties back to a business, professional guidance is essential to manage higher interest rates, loan-to-value (LVR) ratio limits, and compliance considerations.
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