MELBOURNE, Australia – La Trobe Financial is well placed to offer a competitive product to assist both some of our existing clients and others. Our product allows SMSF borrowers to purchase a wide variety of properties such as residential, retail, commercial or rural/residential.
More than half a million self-managed super funds are now in operation according to the latest statistics released by APRA in May 2013. The average balance of a SMSF is stampeding towards $1 million, with the “average” fund balance now around $986,000. Individuals running SMSF’s control nearly a third ($492.2 billion) of the $1.58 trillion invested via Australian superannuation funds. Ten years ago, DIY super funds represented one-tenth (10%) of all superannuation money, and SMSFs are projected to grow to $2.23 trillion by 2033.
Individuals managing their own SMSF have a number of key benefits when borrowing, such as:
• 15% tax rate on rental income;
• expenses such as interest, may be claimed tax deductions by the SMSF;
• potentially no capital gains tax on sale of property if held for at least 1 year;
• greater investment choices and control of underlying investments;
• the SMSF can pay out or reduce the SMSF loan at any time (depending on the terms of the loan);
• through gearing, the SMSF can acquire property for a greater value than that of the fund’s “net worth”; and
• all other SMSF assets are safe and cannot be touched due to the limited recourse provisions in section 67(4A) of the Superannuation Industry Supervision Act.
Paul Wells, La Trobe Financial’s Senior Vice President and Chief Investment Officer stated, “We are pleased to be in a position to offer such a competitive product to the SMSF market.” Wells said, “La Trobe Financial has always strived to produce competitive products meeting our clients’ needs.”
Greg O’Neill, La Trobe Financial’s President and Chief Executive Officer commented, “With the recent election and both parties now ‘promising’ to leave superannuation alone is good news. Labor’s commitment for five years and the Coalitions’ was for “no adverse changes” for the first parliamentary term places more certainty back into the system. Moreover, SMSFs have low exposure to residential property of around 3.2% according to ATO figures recently released, which hardly constitutes a bubble.”
La Trobe Financial will make further product announcements shortly.
Visit La Trobe Financial website at www.latrobefinancial.com.au
Media Contact :
Marketing & Events Manager
La Trobe Financial
t: +613 8610 2842
m: +61 422 270 474
Distributed by Kjprnews
Company Name: La Trobe Financial
Contact Person: Caterina Nesci
Phone: +613 8610 2842