Islamic Investment in Property Through Your Super

Islamic SMSF Property Financing involves Sharia-compliant financing structures for investing in residential or commercial properties through your SMSF. It ensures that your property investments are in line with Islamic financial principles.

The documentation required for SMSF property financing varies based on individual circumstances and the type of application. At Afiyah, we guide you through this process in detail, ensuring you understand what's needed for your specific situation. Below is a high-level overview of the general documents required. For a comprehensive and personalised list, please contact us directly.
 

General Documentation for All Applications

• SMSF Cash Management Account Statements: Required for the last six months, or two years for Industry Super Fund statements.
• Audited SMSF Tax Returns and Financials: For the last two years (if applicable), with the TFN removed.
• Accountant Letter: Confirming the annual ongoing cost for the SMSF.
• Independent Legal Advice Guarantor Certificate: Required at the time of mortgage documentation.

For PAYG Members – Income Verification

• Recent Payslips: The three most recent consecutive payslips, with the latest being less than 14 days old.
• Bank Statements: The latest 5 months' statements showing regular salary credits from the employer.

For Self-Employed Members – Income Verification

• Business/Company/Trust Taxation Returns and Financials: For the last two years, with TFNs removed.
• Personal Taxation Returns & Tax Assessment Notices: For the last two years, with TFNs removed.
• Business Activity Statements (BAS): For the most recent period, along with corresponding 6 months' business bank statements.

For New Purchase Applications

• Rental Appraisal Letter: From a registered real estate agent.
• Existing Super Fund Statement: If funds are to be rolled into the SMSF.
• Signed Contract of Sale.

• Ethical investment: Ensures your property investments through SMSF comply with Islamic finance principles.
• Versatile options: Tailored financing for residential and commercial properties.
• Clear terms: Transparent fees and structures, defined upfront.
• Control over investments: Manage your property investments while adhering to Islamic values.

Evaluate Your Investment Strategy

Align with Retirement Goals: It's essential to choose property types that align with your SMSF goals, particularly focusing on how they fit into your long-term retirement strategy. This decision should not be made in isolation but in consultation with a financial adviser, ensuring that your property investment complements your overall retirement plan.

Consult Financial Advisers: Engage with financial experts who can provide insights into how different property investments can impact your retirement portfolio. They can help you assess the potential returns and risks associated with various property types.

Understand All Costs

Comprehend SMSF Expenses: Operating an SMSF can be costly. It's important to fully understand the costs involved in running and managing your SMSF, including setup fees, ongoing administration costs, and any legal or advisory fees.

Evaluate Viability: Assess the financial viability of your SMSF property investment. Consider all associated fees and charges, and how they will impact the overall return on your investment. This step is crucial to avoid any unexpected financial burdens in the future.

Partner with Experts

Afiyah's Finance Expertise: While Afiyah offers expertise in Islamic finance, it's important to complement this with advice from your accountant and financial planner. Our role is to ensure your financing is Sharia-compliant and suited to your needs.

Structural and Retirement Goal Alignment: Your accountant and financial planner will assist in understanding the right structure for your SMSF and ensuring that it aligns with your retirement goals. They can provide a comprehensive view of how property investment through your SMSF fits into your broader financial landscape.

We offer financing options for both residential and commercial properties, tailored to suit your investment strategy within your SMSF.

The costs vary depending on the setup option chosen. They include setup fees for the Superfund, trustee company, and bare trust, alongside Afiyah’s service fee for the loan component.