Using unit trusts for purchasing property through your SMSF
Q: I’ve just finished reading DIY Super for Dummies and found it really helpful. What interested me was the borrowing options for SMSFs.
Federal Budget May 2011: At a super glance
Although Wayne Swan promoted the package of documents as delivering jobs and spreading the benefits of the mining boom to more Australians, the May 2011 Budget also delivered several superannuation measures including:
SMSF borrowing: What’s the difference between a non-recourse and limited recourse loan?
Q: Can you differentiate between a limited recourse borrowing arrangement (SMSF instalment warrant) and a non-recourse loan. Are they the same thing?
Limited recourse borrowing: What you can and can’t do under the new super rules
Although self-managed super funds are generally not permitted to borrow, the super rules do provide some exceptions. The most publicised exception to the ‘no borrowing’ rule is the ability to enter a limited recourse borrowing arrangement.
SMSF basics: Can my DIY super fund borrow money?
The general rule is that your super fund can’t borrow money, although like all rules the ‘no borrowing’ rule has some exceptions. SMSF trustees need to understand the difference between direct borrowing and indirect borrowing and the special rules that apply to each exception.
SMSF investment: Can my DIY super fund invest in direct property?
Q: I am interested in setting up a self-managed fund. I would like to know more about the rules for purchasing property in a super fund, and whether it is possible to use borrowings to do so. Could you recommend a book that would cover this in detail?
SMSF and property: instalment warrants 101
NEWS UPDATE: On 10 March 2010, the Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen MP announced two changes to the instalment warrant rules in relation to superannuation:
