Q: I’ve just finished reading DIY Super For Dummies and found it really helpful. What interested me was the borrowing options for SMSFs. We already own a property in our fund and we are looking at using borrowings for financing our next fund purchase. In your book, you mention a joint venture to invest in property with fund members, which is purchased through a unit trust structure. Any information you can give me, or websites with information about unit trusts would be really appreciated as I haven’t had much success myself in finding this information.
Many thanks for your email and I’m pleased that you found my book useful.
In relation to your question about joint ventures and unit trust structure, the best person to help you is an accountant who works regularly with a lot of SMSFs. Most accountants who work in this space are familiar with these arrangements.
You may also find the following SuperGuide articles useful:
- SMSFs for Beginners: Can my DIY super fund borrow money?
- SMSF investment: Borrowing to invest can be the means, not the end
- SMSF borrowing: Investing in property (what’s OK and NOT OK)
You are correct about information sources being scarce but here’s a few you can try. Resources that you may find helpful as a SMSF trustee (although the specific question you ask is best answered by an accountant or financial adviser) include:
- ATO publications and ATO website. The ATO has produces several publications or web pages on this topic. You can search for them yourself via the ATO website (gov.au)
- SMSF News. The ATO publishes a newsletter for SMSF trustees. It is periodic rather than regular, but when it is published (and emailed to you), you can expect to find helpful information.
- ASIC MoneySmart. The financial regulator, ASIC, runs a consumer information website called MoneySmart. The information is fairly generic but helpful for those readers considering setting up a SMSF.