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Borrowing within your SMSF
Borrowing to invest is not for everyone but it can accelerate the growth of your super assets allowing you to reach your retirement goals earlier.
Borrowing in a SMSF is allowed subject to certain conditions, including;
- The borrowing is in the name of the SMSF trustee
- The borrowing is in relation to an asset that the SMSF trustee is allowed to acquire
- The asset is held by a separate trustee (security trustee)
- The borrowing is limited recourse i.e. the lender only has access to the underlying asset if things go bad
- Provided all payments have been paid to the lender the security trustee will transfer all legal ownership to the smsf trustee on maturity
However this can be a complicated process and you should always receive advice before deciding on this a course of action. Wilson HTM has a number of products specifically designed to allow you to borrow within your SMSF.
One of the benefits of establishing a SMSF is the control it provides trustees over the fund's investment strategy.
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Having your own personal self managed super fund (SMSF) gives you more control over your retirement savings.
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