Our team has acted on behalf of hundreds of clients to set up the appropriate structures to borrow through SMSFs, and to complete the Limited Recourse purchase of the property. Self-managed superannuation funds (SMSFs) can borrow to purchase property. However, there are strict requirements on the trust structure that must be used, as well as the property being acquired and use of the property after settlement. SMSFs are audited each year to ensure these requirements are met, and there are severe penalties in the event of breach.
Our SMSF/Limited Recourse property experience
We will ensure that you are provided with a compliant structure, and are aware of the requirements for it to remain compliant both before and after settlement of your purchase.
Banks also have strict requirements when lending to SMSFs, and we have experience in dealing with all major lenders for SMSF transactions.
You can find out more about Limited Recourse Borrowing Arrangements in our blog post here.
What are the consequences of not setting up the correct structure?
There are a few consequences to consider should you not set up the correct structure from the beginning. These consequences include:
- Additional costs to the Self-managed Superannuation Funds (SMSF)
- Additional transfer duty
- Additional legal fees
What should you do next?
Our team of lawyers have over 25 years’ experience in setting up structures to purchase property. We can assist you through the process and provide you with any legal options that suit your unique circumstances.
Contact our team to discuss your SMSF / Limited Recourse property matters.