Following on from our Spring Newsletter Hot Topic – ‘Borrowing in Super’ we thought we would provide information on who you need to be talking to, to get the right financial advice. The SMSF Borrowing arrangements are quite complex, so it is important that you seek the correct professional advice from the outset. Many factors need to be taken into account, including cashflow serviceability, return on investment and taxation consequences
So what experts do you need on your side and what specific role do they play?
Your Financial Planner – acts as an investment advisor and will assess the income and capital returns from the investment to determine if it meets your goals and objectives. They will ensure the investment is in line with your risk profile and fits with your investment strategy. It is important to note that the Banks do require you to seek investment advice from a Financial Planner as part of the approval process.
Your Finance Broker – works with you to determine which Bank will be most suitable for your situation and proposed investment. This is because different Banks are more comfortable with particular circumstances than others. The broker will as discuss with you the Loan to Value Ratio (LVR), Interest Rates and Serviceability of the loan.
Your Accountant – will work with you to establish the correct legal structures and determine if Borrowing within Super is the most tax effective option for you. Your accountant will also continue to work with you each year to manage the ASIC and ATO compliance of the Fund and ensure all lodgement deadlines are met and SMSF rules adhered to.