Self Managed Superannuation Funds

The following information is just that, general information.


Information contained herein does not take into account the investment objectives, financial situation and needs of any particular individual or self managed superannuation fund.

You should assess with the help of legal, financial and taxation advice, whether this lending facility is appropriate in light of your circumstances before acting on this general information.

Only investors who fully understand the risks associated with gearing into investments should apply. With changes to the Superannuation Industry (Supervision) Act 1993 (Cwlth) and Regulations (SIS Act), superannuation fund trustees can now borrow money to help purchase investment assets for their regulated superannuation (subject to certain criteria).

The ability to borrow can build on the taxation advantages currently available to complying superannuation funds and can help a fund to acquire a larger and more diversified portfolio of investments with a view to successful long term wealth accumulation.

However, superannuation law is complex and as such, careful management is paramount. Penalties for non-compliance can be severe and your future retirement savings are directly involved.

It allows the SMSF Trustee to borrow to invest in real property purchased on commercial terms for investment purposes only, including Residential, Rural or Commercial investment property located within Australia which your SMSF is otherwise permitted to acquire under superannuation legislation, subject to approval by the lender (of your choice), on a case by case basis.

Depending on your circumstances, it is possible to purchase more than one investment property. Not all lenders provide a lending product to assist a Self Managed Superannuation Fund (SMSF) to purchase property. Those that do, request that you obtain and become conversant with their respective Product Information Booklet (PIB).

Ideally it is best to deal with a credit advisor who is properly SMSF accredited with the lender. We hold those accreditations and authorities.

 

Glenn N Gough, DipFMBM, MFAA (CA), MIPA, C.dec, is a credit representative 390993 of BLSSA Pty Ltd, ACN 117 651 760 (Australian Licence 391237)

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