The general rule is that your self-managed super fund (SMSF) can’t borrow money, although like all rules the ‘no borrowing’ rule has some exceptions. SMSF loans are now possible.
Since September 2007, the trustees of a SMSF has been able to borrow money to invest in things like residential property, as long as they follow some strict criteria. This can be achieved by using a Limited Recourse Borrowing Arrangement (LRBA). In simple terms a LRBA means that any recourse that the lender may have is restricted to the asset that the loan was made for. This effectively protects the remaining assets in the SMSF from being lost if the property investment turns sour.
So now that you can utilise your Superannuation funds learn more about SMSF Loans, by requesting more information.
Let us guide you through this tricky but beneficial strategy
More information can be found on the ATO website