Investing in property is becoming increasingly popular among SMSF trustees as they build wealth for retirement. As a corporate trustee you are able to borrow funds for a residential or commercial property. Business owners can also use their SMSF to purchase their business premises. Corporate trustees enter into a Limited Recourse Borrowing Arrangement (LRBA) with a bank or financial institution which gives the lender the ability to seize the property should the loan go bad. It's important to do your research into the property market to ensure you're making an informed decision, because the risks that come with an LRBA can impact the long-term health of your SMSF.
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Using an SMSF to invest in property
With an SMSF you are able to purchase outright or take out a mortgage on a residential property or your business premises.