It’s possible to borrow funds to invest in residential and commercial property, but is it a good idea for me?
For nearly 15 years self managed super funds (SMSF’s) have been able to borrow to invest in residential and commercial property.
For residential investment you would need to ensure the property forms part of a well balanced portfolio. Speak to your accountant or financial advisor in the first instance.
If you’re a business owner with the opportunity to purchase your office, warehouse or industrial property it may make sense to hold the asset in your self-managed super fund, as it can be a good way to contribute additional amounts via rent over and above the annual super contribution cap. You should speak to your financial advisor or accountant first to ensure you understand the risks, however it can be a great way to build wealth in your SMSF.
Contact us if you have any questions on how we can help obtain the right lending arrangement for your particular situation.