Using an SMSF with Selfmade, you can borrow the money to buy a single piece of real estate. The borrowing has to be done through a structure called a ‘bare trust’. This is also known as a limited recourse borrowing arrangement.
While there is still strong demand to buy property in super, the number of lenders to SMSFs has decreased in the last few years. Selfmade can put you in touch with an experienced mortgage broker for SMSFs, who can help you navigate the lending options.
If your SMSF uses a bare trust to buy property, an extra cost applies to set up the bare trust structure.
Your SMSF would also have to pay the usual costs for buying property, such as lender’s fees, interest, stamp duty and conveyancing.
Note: an SMSF can also invest in property by buying property outright, or by using fractional property investing.
How Selfmade does it
SMSFs on our platform can borrow to invest in property. Contact us if you want to find out more.
If you’re ready to create an SMSF, register today.