Yes its an interest only loan for $357,000. They have never invested their own money before and they were approached by a property investment group that promised them the world and basically they were scammed and now they are paying for it. They owe more on the unit then what its worth and they are paying more interest on it then they could have gotten elsewhere and they payed the investment group a lot of money to set it all up, its infuriating.

They tried to refinance and were informed that they would have to pay out $17k in order to do so.

I have a large amount of experience in the finance industry, not so much in regards to smsf's but none the less I could have at the very least guided them in the right direction but instead they were given the hard sell and pressured into doing something without thinking it through.

Ok will do, thanks for the advice.

This is actually pretty annoying because her super fund returned negative for the last year while she is paying 7.09% interest on an investment property. So in essence I thought she could simply use her super fund to pay some of her investment loan to basically be 7.09% better off guaranteed. Anyhow I guess we will just have to deal with the system that's in place.

Thank you all for the replies.

Just to clarify, they could purchase another investment property under the name of a smsf but they cannot use funds from the smsf to put into an existing investment property because its in their individual names? Is this correct?

Thanks