Super Borrowing Instalment Trusts
This service is designed to assist Accountants, Real Estate Agents, Financial Advisors or Planners, Trustees of Self Managed Super Funds and licensed finance brokers in Australia looking to assist their clients to establish a facility to enable them to purchase property via a super fund with an approved lender with borrowed funds.
This is a powerful new tool for the accumulation of wealth through superannuation was introduced when the Superannuation Industry Supervision Act 1993 (SIS ACT) was amended in September 2007 to allow super funds to borrow to invest in any asset they are normally allowed to acquire, including property. This enables Self Managed Super Funds (SMSF) to purchase real estate without sufficient funds to complete the purchase outright, as well as take advantage of the same gearing options available to regular property investors
What sort of property can be purchased?
- Residential Investment Property
- Commercial, Industrial and Retail Investment Property
- Owner Occupier business premises (business real property)
What are the opportunities?
- The super fund can borrow to acquire assets it may not be able to afford to purchase and pay them off over time.
- The super fund can accelerate the purchase of the property using large tax deductible contributions to the super fund.
- The super fund obtains the income and capital growth from the asset from the time of acquisition.
- A business can borrow funds via the super fund asset to purchase a premises to operate a business from.
- The First Charter Super Borrowing Instalment Trust facility is a once only cost to establish and has no ongoing fees.
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