Why Borrow? Borrowing to invest can be a great way to leverage your capital and increase potential returns.

Many people need to consider gearing strategies to increase their wealth and create passive income.

Borrowing to invest is a growth investment strategy that can help you grow your capital by leveraging your funds and investing in assets with the potential for high returns. However, it carries a greater risk of loss than other investments, so it is important to research the asset you are investing in and ensure you are comfortable with the associated risks. A financial advisor can help you with a gearing and debt management strategy if you are considering borrowing to create wealth.

Our authorised debt management advisers provide specialist debt structuring and investment services to help you understand the risks and rewards of borrowing to invest.

As a financial advisor group, ANIG WM provides residential and commercial property advice including structuring property advice through a self managed super fund (SMSF).

Our advisers can help with borrowing for investing in both residential and commercial properties. They can provide advice on the best course of action for your individual situation and can help you navigate the borrowing process.

Our experienced financial advisors provide tailored cash flow and debt management services to help clients achieve their financial goals. They offer advice on how to manage finances and create long-term plans, as well as guide clients to make sound investment decisions. Furthermore, advisors assist clients in staying on track with their objectives and identifying potential risks.

If you have been thinking of taking ownership of your superannuation savings and having a say in the how, where, and type of assets your funds get invested in, then an SMSF may be a tool to consider.

  • A strategic gearing strategy with indications and projections on expected investment returns.
  • It captures an investor’s preference, attitude towards risk, and passive income target.
  • Additionally, a loan-to-value ratio (LVR) analysis is conducted to ensure there is sufficient cash flow to support a long-term gearing strategy.
  • Illustrations of how the gearing strategy can boost cash flow and reduce tax are also provided.
  • Lastly, a guide on making interest repayments and a timeline on when the debt could be cleared are included.

By default, an SMSF does not come with life/TPD insurance. Unlike retail or industry super funds, an SMSF does not automatically provide life or total and permanent disability insurance. You must arrange insurance coverage for yourself and any other fund members if you have an SMSF.

Investing in property through superannuation can be a great option for investors looking to diversify their portfolios and take advantage of lower taxes on rental income and capital gains.

Generally, an investor could consider SMSF property investment when there is sufficient cash flow, liquidity and the SMSF has a long-term investment approach.

Therefore, if an investor wishes to pay minimal or no taxes on rental income or capital gains from their property investments until retirement, investing in property within their superannuation fund is a great solution. This will allow them to benefit from the tax advantages that superannuation offers and also ensure that their investments are secure and managed professionally.

Sometimes, redrawing from home equity and contributing the money into super can be a good idea. This strategy involves redrawing from home equity and injecting the capital as a non-concessional contribution (NCC) to super. However, the interest on the loan amount drawn from the home and contributed into super is not tax-deductible at the marginal tax rate. Therefore, cash flow is essential to ensure the strategy is successful.

This strategy may only be suitable if there is sufficient surplus cash flow. The loan should be paid off within the strategic investment timeline if this strategy is pursued. The primary benefit of this strategy is that the investment is made in a lower tax environment (max 15%), with CGT capped at 10%. However, the investor loses out on tax credits on interest payments.

ANIG WM is the home of professional Financial Planners and SMSF-accredited Advisers. With our personalised approach, you can trust that your financial future is in good hands.

Message from our SMSF-Accredited Advisers

Experience our expertise in SMSF advisory and investment services by making us your specialist SMSF advisers. We offer unlimited access to our knowledge and professional SMSF service solutions. We can also assess an SMSF borrowing strategy with you, helping you determine your borrowing capacity and advise if it is a viable solution for you.