Why borrowing through your SMSF to invest in residential property doesn’t stack up

Key Points Recent law changes have led to mass marketing of loan products for SMSFs to invest in residential property Many advisers and investors are excited that you ‘can borrow’ in your SMSF but the benefits aren’t at all clear In many cases using your SMSF will reduce your after-tax returns The Myth The opportunity for SMSFs to borrow to purchase residential property provides you with tax benefits and allows you to accelerate your wealth and achieve your financial goals sooner. The Motive Changes to superannuation law made in 2007 and 2010 allow SMSFs to borrow to buy residential...

The opportunity for SMSFs to borrow to purchase residential property provides you with tax benefits and allows you to accelerate your wealth and achieve your financial goals sooner.

Changes to superannuation law made in 2007 and 2010 allow SMSFs to borrow to buy residential property. This has opened up a new class of buyers and encouraged investors to establish SMSFs to ‘take advantage’ of this opportunity.

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