SELF MANAGED SUPER FUND

BUY YOUR NEXT PROPERTY THROUGH YOUR SELF MANAGED SUPER FUND

Superannuation funds can now borrow money to purchase real estate. An investor can have just as much choice and control over investment properties inside as outside a superannuation fund.

The Superannuation Industry Supervision Act (SIS ACT) was amended in September 2007 to allow self managed super funds (SMSF) to borrow to purchase real estate so long as a special structure is used.

As a result of this change, we now able to offer a cutting edge product that caters to this market. Under this new act, a SMSF may borrow provided:

• Borrowed funds are used to purchase an asset
  
• Asset is held in trust for the SMSF by another entity, ie. property trustee
  
• SMSF must have the right to acquire legal ownership by making payments
  
• Lender’s recourse against the SMSF must be limited to the underlying asset, ie. other SMSF assets protected
  
• The SMSF must comply with all regulations applying to superannuation funds
  
• SMSF must ensure level of investment in real property is in line with the fund’s investment strategy, including:
  

• diversification of assets
• liquidity
• maximizing member returns in fund
  

For more information about SMSF mortgage, call us today on 9971 9901.