EvolveMySuper

Every SMSF needs to be audited by an appropriately qualified auditor every year. With the increased number of SMSF trustees looking to purchase property using the limited recourse borrowing opportunity, the obvious question is:

“How will a limited recourse borrowing impact on the audit of my SMSF?”

Over the last month I have received numerous emails from people asking questions relating to buying property with a SMSF utilising the super borrowing opportunity.

This article reviews the five most common questions I am asked.

Can a SMSF renovate a property that has been purchased under a limited recourse loan arrangement?
Following the changes made to the super borrowing laws that came into effect on the 7th of July 2010, one of the major items which both investors and advisers have been chasing clarification on is whether a property can be renovated when purchased under such an arrangement.

Using negatively geared property has been a favourite strategy of Australians trying to build wealth for a long time – but is this strategy still the best option now that you can use your super as the deposit to acquire both residential and commercial property?

For many years the family trust has been the preferred investment vehicle for people looking to build wealth through property – and rightly so. However, with self managed super funds now able to borrow to invest in property via limited recourse loans, every property investor who currently has a family trust or who may be considering one needs to take another look at what is the most appropriate structure for their situation.