Since September 2007 Self Managed Super Funds (SMSF) have been allowed to borrow to buy property. It is a limited recourse loan which means that the recourse to the loan is limited to the asset in question.
What the government has done is make it easier to borrow to buy property with our Superannuation savings and build a long term capital growth and income asset for our retirement. This is a whole new ball game that enables qualified investors to take control of their Super and one that have property in this vehicle.. Capital Gains tax and rent are taxed at a lower level, leverage is being utilised and when the fund moves to pension phase the income from the property and capital gains on the eventual sale are tax free.
It’s your Super – take control of it and follow the smart money. Self Managed Super is the largest asset base in Australia.
Of the $1.28 trillion invested in Super at 30th September 2010, $408.1 billion was invested in Self Managed Super Funds. That’s 31.9% of Australia’s retirement savings, with SMSFs now representing the largest slice of the super industry and its fastest growing sector.
This is a specialised investment area where Maxi Own has helped many new SMSF investors.