retirement. Many Australian's are watching their superannuation funds perform move up and
down. Many Australian's would also like to have a more hands on role in deciding what their
money being invested in.
- You have control of the investment strategies
- You control what type of investments to put your money into.
- Flexibility of investment cash. term deposits, shares, and direct property
- Tax deduction of life and disability insurance
- Capital protection of your share portfolio
- Tax planning advantages
- Able to consolidate family member's super together
- Borrow funds to invest in an investment property
Your SMSF Borrowing to Invest in Property
Due to the amended Superannuation Industry Act the Australian Government has made it
possible for ordinary Australians to borrow money to buy property outright in their SMSF.
This is seen as increasingly popular as it allows people to invest in property while creating wealth
for their retirement at the same time without placing too much pressure on their current cash
Some Australians are uncomfortable with the unps and downs of the share market, this gives
them the ability to invest in a growth asset without the stress of the share market volatility.
What Can A SMSF Invest In?
Investments must be for the ‘sole purpose’ of providing retirement benefits for the members of
the fund. Fund investment portfolios can include many of the following investments:
- Cash management accounts.
- Fixed Interest, Term deposits and Bonds
- Managed funds (Australian and international).
- Listed Australian & International Securities
- Commercial & Residential property.
- Property purchased with borrowed funds (limited recourse borrowing).
- Property partnerships with non-related parties.
- Shares in private companies with non-related parties.
- Options, warrants, CFDs
- Other “exotic” investments like Artwork, Diamonds, Coins and Cars – these assets are permissible under limited circumstances with the proper investment strategy.