Investment - SMSF

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Can I borrow funds through my SMSF (Self Managed Superannuation Fund) to buy a holiday home?

A Self Managed Superannuation Fund can borrow money to purchase an investment property. However, certain restrictions apply:
  • Borrowing is generally restricted to 80% of the value of the property to be purchased
  • The fund must have a balance sufficient to cover the 20% deposit and associated purchasing costs
  • All loan repayments must be paid by the fund.  If the rental income is not sufficient to cover the mortgage repayments, additional contributions to the fund will be required through the fund.
  • Speak to your financial advisor and taxation accountant prior to entering into any property transaction. More details can also be found in the ‘Looking to invest?’ part of our website. 
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