Many superannuation savers are borrowing to purchase real property in their SMSFs. Although this strategy delivers advantages for some investors, it should not be forgotten that the necessary regulatory requirements to effectively implement it are extremely complex and there are a myriad of issues and traps that need to be very carefully considered. The focus of this presentation is on giving practitioners the necessary tools to properly advise clients who may be contemplating this strategy. It covers:
- implementing, maintaining and dismantling the structure – what are the prudential, tax and stamp duty issues?
- overview of the finalised SMSFR 2012/1 and TA 2012/7
- what are the advantages and disadvantages of this strategy?
- issues when auditing an SMSF that has implemented this strategy
- latest developments and strategies
- case study – comparison of different strategies.