What is SMSF Borrowing?

Wednesday, 16 June 2010

In 2007 the Government made a significant move to allow the trustee of a superannuation fund to borrow.  Since that time there have been several rulings from the Commissioner and some recent changes to the law.  However the latest news is that borrowing in a SMSF is alive and well with major banks Westpac, NAB and St George offering highly competitive investment property lending product.  However to successfully borrow the following must be put in place

  • The fund’s trust deed must be upgraded to meet recent changes to the law;
  • A bare trust must be established to hold the legal title over the property for the duration of any lending;
  • All income from any rental is to be paid to the trustee of the fund;
  • All expenses are to be paid by the trustee of the fund including interest and property management fees.

SMSF Strategies has the latest in SMSF Borrowing documentation and is in constant communication with the banks.  The SMSF documentation includes a Product Disclosure Statement as required by the Corporations Act 2001 plus a commitment to ensure that it is completed quickly and at a low price.