An Introduction To Borrowing Through A SMSF

There’s a lot of noise in the market place at the moment about Self Managed Super Funds (SMSFs). Back in the day, we weren’t allowed to borrow within SMSFs for investments like property or shares. But since 2007, all this has changed. Today we are able to borrow to purchase both commercial and residential property as well as a range of other assets.

There is so much information out there; our best advice is to do your own research before making any decisions. We’ve listed some basic summary pointers below as a start that might help you to decide whether this could be the solution for you.

  1. SMSF’s do give you greater control over where your money is invested as well as more choice. However, they also require more research and administration from you.
  2. You can invest in virtually any asset from property to artwork, however there are strict guidelines, so before you get excited at the local gallery, it’s best to consult an expert.
  3. Investing in an office or commercial space is popular amongst business owners as a way of capitalising on their super fund. Better to pay rent to your own fund rather than someone else!
  4. The members of the fund are ordinarily also the trustees and you can enter a SMSF with up to 5 investors. However, as the name suggests, you run your own ‘fund’ so you are responsible for complying with the super and tax laws.
  5. You must have the SMSF fully functional before you can change funds.


Still confused? BCV offer SMSF services including setting up a fund and ensuring you’re compliant. To find out more call the team on (03) 9781 4533.

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