Hi all,
I recently read an article that left me with the impression that property other than "Business Real Property" could now be purchased using borrowings, within a Self Managed fund.
I'm keen to know more if others have done so.
Cheers
Swany
Try this link: http://www.macquarie.com.au/retail/acrobat/tech_iw_smsf_checklist_200801.pdf I hope it helps
Just a note for everyone who accesses this link that this flyer was developed for FINANCIAL PLANNERS (refer the disclaimer) and is not intended to be financial advice. So see a planner before you act on anything.
Hi Swany
Yes it can be done as long as the Trust Deed is amended to allow borrowing for installment warrants and Yes i have done it for myself and clients already.
Richard Taylor | Australia's leading private lender
Guys….thanks for the reply.
Swany
Hi Swany
I have implemented this strategy for a client.
A SMSF can invest in any asset, apart from a few exceptions contained in the legislation via an instalment warrant structure. With regards to arranging for the trust deed to be amended to allow for investments in instalment warrants, it may not be necessary because your existing trust deed may already allow for this kind of investment via a catch all clause. The catch all clause allows the trust deed to remain current even when legislation and regulations are amended.
In saying this it is still advisable that a SMSF trust deed is reviewed and updated every couple of years.Cheers
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