Forum Replies Created
Viewing 1 post (of 1 total)
The statement is not quite correct. In general trusts can borrow money.
Superfunds are prohibited from borrowing money. Therefore the trust that is estabished for you to manage a Self-managed Superfund will not be permitted to borrow money. Therefore all leverage is lost.
The principle advantage of Superfunds is the low rate of taxation. However, not being able to borrow money renders them uncommon vehicles for property investing. The ability to put up only a small amount of the purchase price and borrow the rest (Known as leverage) is a major benefit of investing in property.
Is that more clear?
Viewing 1 post (of 1 total)