Introducing Macquarie Property Lever

Take your super. Then increase its investment power. That’s the potential when you lift your SMSF with Macquarie Property Lever.

Here's how it works

First, you find an eligible residential property to invest in. It's your choice. If approved Macquarie Property Lever will fund up to 55% of the property value by a limited recourse loan from Macquarie Bank.

On settlement of the purchase, the property is held on trust for your SMSF by a security trustee. Your SMSF gets any net financial benefits of owning the property whilst the rest is taken care of by Macquarie Property Lever. You sit back, relax and receive any net benefits from your investment for the next 9.5 years, while a professional property manager appointed by Macquarie takes care of your property.

Right from the start you receive the net rental income from the property, plus any potential tax benefits from the investment, less the establishment and transfer costs, interest on the Macquarie Property Lever investment and liabilities of the property such as maintenance and management costs.

After 9.5 years, or before if you choose*, your SMSF repays the Macquarie Property Lever facility. And the property is transferred to your SMSF. Or if you prefer you can direct the security trustee to sell the property (to an unrelated third party) at a time that suits you.

*Subject to early prepayment fees

Shift your thinking to investing sooner than you thought

Macquarie Property Lever helps you achieve something you couldn't do before - get long-term, leveraged exposure to direct residential property through your SMSF. And more, you get to invest in a property of a higher value than your SMSF may otherwise have been able to afford.

At the end of the investment term, your SMSF could be the owner of a more valuable property than you may have otherwise envisaged. A property that has potentially accumulated nearly ten years of capital gains. And returned close to ten years net rental income.

Step-by-step overview

You choose an eligible residential property
Macquarie Property Lever will contribute up to 55% of the contract purchase price, (if approved)
Your SMSF contributes the additional funds to complete the purchase and associated costs
The property is purchased by a security trustee and held on trust for the SMSF
Your SMSF receives all income and pays all costs of the property and loan, and all fees, during the term
Take up to 9.5 years to repay the interest only Macquarie Property Lever investment [loan]
Your SMSF repays the principal and obtains full ownership of the property (or it can be sold if you prefer)

Key features and benefits

Leveraging your SMSF potentially helps you improve its returns when property values increase
Potential for tax deductible interest payments where the investment is negatively geared
Choose your own eligible property
Hassle-free management and administration

Risks

Of course, an investment in Macquarie Property Lever also involves some risks, including reduction in property values and rental income over the term, and costs associated with the application process.

For more information on the benefits and risks call 1800 229 848.

Is Macquarie Property Lever for you?

Macquarie Property Lever is an ideal leverage tool for those investors with a SMSF with a strategy that includes investing in residential property.

Macquarie Property Lever may suit those who:

Have a Self Managed Super Fund^
Want to invest some of their SMSF cash in residential property
Are looking for long term exposure to residential investment property

To shift your thinking to Macquarie Property Lever call 1800 229 848.

*Before investing, SMSF trustees should obtain their own advice as to whether this investment is permitted by superannuation laws, allowable with regard to their SMSF investment strategy and otherwise appropriate for their SMSF.

Important information | Privacy policy

This information has been prepared by Macquarie Bank Limited ABN 46 008 583 542 AFSL 237502 ("Macquarie") for general information purposes only, and does not take into account any potential investors’ objectives, financial situation or needs. Before acting on this general information, investors must consider its appropriateness having regard to your own objectives, financial situation and needs. Investors should consider the Macquarie Property Lever Brochure before making any decision about whether to acquire or continue to hold an investment in Macquarie Property Lever. A copy of the Brochure is available from Level 22, 20 Bond Street, Sydney or by phoning 1800 229 848. All potential investors should obtain independent financial, legal and taxation advice and consider all risks before making any decision about investing.

In addition, before investing, superannuation fund trustees should obtain their own advice as to whether this investment is permitted by superannuation laws, allowable with regard to their SMSF investment strategy and otherwise appropriate for their fund. Diversification of your SMSF investment portfolio can be used as part of your overall portfolio risk management strategy. By diversifying your investment portfolio, you may reduce your exposure to failure or underperformance of any one investment, manager or asset class.

Trustees take full and sole responsibility for their investment in the Macquarie Property Lever and any changes in superannuation laws and administrative practices during the term of that investment. Before investing, trustees should ensure that sufficient cash flow is available to meet interest and any other associated costs during the term of the Macquarie Property Lever.