I am excited to write the first of what I hope to be many articles for our Slate newsletter.
Having joined the Board in August 2014 I have spent the last few months learning about our Mutual Bank and its people. I have also had the opportunity to meet some of our Members and received their input on the job we are doing.
This learning journey has shown we are more than just a bank to our Members. We aim to look after our Members’ holistic financial needs. There is more to us than just Term Deposits and Home Loans. Our products and services, including financial planning and wealth management solutions, are there to help all Members, regardless of their stage of life. There is one such product offering that I have taken particular interest in.
Many Australians see the purchase of an investment property as part of their long term wealth accumulation and retirement planning strategies. Where the decision has been made to acquire an investment property, one of the next questions to be asked is what legal structure should I purchase the property in? Should it be in my own name, in a family trust, or potentially using a self managed superannuation fund?
Many people believe superannuation funds can’t borrow. This is not true. Legislation exists which allows superannuation funds to borrow to buy certain assets, including certain types of property.
As a Certified Financial Planner I was interested to see we offer a self managed superannuation fund loan product to our Members, which is both competitive and well structured. It is pleasing to see we are attuned to our Members’ needs and the opportunities that should be made available to them.
Borrowing within a self managed superannuation fund is a complex area and advice should be sought before implementing such strategies.
Having said we have great products, the recent Murray inquiry commissioned by the Federal Government into the Australian Financial System could see an end to such products as the recent report from the inquiry believes there is a risk to overheating of the property market. However at the moment the opportunity exists and we will continue to provide advice and product solutions to our Members.