In 2007 amendments to the Superannuation Industry Supervision Act (SIS) allowed self managed superannuation funds to borrow money via a SMSF Loan provided an acceptable structure was utilised. A SMSF can borrow funds for the purchase of income producing residential, retail, commercial, rural or specialised properties.
In essence a Security trustee will purchase the property on behalf of the SMSF and become the legal owner of the property holding it in trust for the SMSF (as beneficial owner).The SMSF will provide an equity contribution from the Superannuation Funds assets and borrow the balance of the money with an SMSF loan.
The SMSF loan is “limited recourse” meaning the SMSF lender cannot touch any of the SMSF’s assets other than the property held as security. In other words the rights of the SMSF lender against the SMSF in the event of the SMSF loan defaulting are limited to the security property.
Ezy Option Finance not only has access to the products of all funders offering such loans but can also provide access to both associated Financial Advisors and Accountants for any technical assistance as may be required.
Ezy Option Finance has successfully achieved high results for our clients with both SMSF residental and commercial aquistions.