Investing in property is becoming increasingly popular among SMSF trustees as they build wealth for retirement. As a corporate trustee you are able to borrow funds for a residential or commercial property.  Business owners can also use their SMSF to purchase their business premises. Corporate trustees enter into a Limited Recourse Borrowing Arrangement (LRBA) with a bank or financial institution which gives the lender the ability to seize the property should the loan go bad. It's important to do your research into the property market to ensure you're making an informed decision, because the risks that come with an LRBA can impact the long-term health of your SMSF.  

General Advice warning:
Pearl Funds Management, an authorised representative AFS Rep No 001254808 of Banyan Securities Pty Ltd AFSL 484139
The information presented by us is general in nature and does not take into account your personal goals and objectives. It does not represent financial product advice. You should always seek independent legal and financial advice before making a decision in relation to a financial product. Read the Product Disclosure Statement (PDS) before making a decision. You should consider your own circumstances, needs and financial objectives before making a decision.

Kirstie Spicer
10 November 2014