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How long STG been offering a SMSF offset loan ?? .
SMSF offset is available via AMP/ St george group ( BOM/sa)/ La trobe....
But you do pay for it as the rate is around 6% variable ( well 5.99 anyway or there abouts...)
Cheap(er) SMSF is available at sub 5.5% -5.60% variable at either reduced LVR or no offset.
SMSF offset is available via AMP/ St george group ( BOM/sa)/ La trobe....
But you do pay for it as the rate is around 6% variable ( well 5.99 anyway or there abouts...)
Cheap(er) SMSF is available at sub 5.5% -5.60% variable at either reduced LVR or no offset.
Michael - So the client gets a choice. 5.5% no offset or 6% with offset. What a scam. I did the maths on a clients $375K loan and $25K offset and it explains that they really only save $375pa as they overpay $1875 in higher rates for an offset benefit of $1500.
What appears to be a 6% earn is really just 1.5%... Packer would lose his casino license doing that.
Da Rock and AMP do them as well
Once you understand no cash out or no cross equity in SMSF you learn to love IO and offset.
most of the lower priced end of town is either fixed, r works around much yuk commercial process.
Rolf, can you explain in a bit more detail what you mean? My specific situation (not implemented yet) is that I will park 100% of a IO loan amount in an offset against it - so no principal and no interest payments. Once the next property settles I will use a significant amount of the cash in that offset to fund it plus a second IO loan. I will then balance the cash in the fund over two offsets against 2 IO loans.
Income from the properties and concessional super contributions will be used to build up more $ in the offsets which I'm hoping can be used to fund further asset purchases or pay off the debt (this is undecided yet).
Am I on the right track with this thinking?
So is there any other lenders except Suncorp that offer a offset on a Commercial loan?
Are these the only SMSF lenders that offer an offset?
AMP
The Rock
St George?
I will butt in............
25 k in offset isnt really the target market, or the vision.
50 to 100 k in offset now and or rapidly building into the future.
for those that want to pay the asset down a basic loan may be a better proposition.............but as is often the case peops change their minds
ta
rolf
Rolf. I agree. But client strategy is to build that quickly by borrowing at a LVR that is cashflow +Ve so that contributions build. If the offset is used in two years for deposit on IP2 (if SMSF laws allow it) then I also question if client loan rate will then be excessive v's a offset with zero $ at that time.
Does anyone know what the interest rates and fees are for commercial loans if I wanted to buy the property under my smsf circa $400k?