POWERED BY MOMENTUM MEDIA
Esuperfund launches SMSF residential property borrowing service
Self-managed super fund (SMSF) administrator Esuperfund has launched a loan service that allows clients to borrow through SMSFs to purchase residential properties.
SMSFs previously needed to have the entire value of a property in cash upfront in order to invest in residential property, pricing many SMSF investors out of the market, until a recent change in the laws to allow borrowing for this purpose.
SMSFs can now borrow up to 72 per cent of the residential property's value through Esuperfund's preferred lender, St George Bank, under the property loan service.
In order for SMSFs to borrow to acquire residential property they must establish a security custodian trust structure or instalment warrant bare trust structure, according to Esuperfund.
Through the loan service, Esuperfund organises the setup structures and documentation for SMSFs at no charge, and no additional accounting or compliance fees are payable, according to Esuperfund chief executive Bill Nicholas.
"Our annual fee remains fixed at $699 per annum, which is unprecedented in the marketplace, [which] will charge additional fees upwards of $2,000 for SMSFs [that] invest in residential property, particularly with borrowings," Nicholas said.
AUTHOR
Mike Taylor
Recommended for you
The impact of identity theft and its threat to superannuation savings were highlighted in a case that went before the Federal Court at the end of 2023.
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
