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Should your SMSF borrow or not?

Self-Managed Super Funds open up a whole new world of investment opportunities for your retirement savings, including direct property. But what if you simply don't have enough money in super to buy property?

Traditionally, you may have had to consider borrowing the balance yourself and then becoming joint owner of the property with your super fund. Perhaps this would have been set up through a trust structure to give
you flexibility later on.

However, since 2007, SMSFs have been permitted to borrow money directly to help purchase investments such as property. For this to be allowed, there are a number of strict criteria that need to be met. For example, it must be established that the lender has no recourse to other assets of the SMSF in the event of default.

Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Please seek personal advice prior to acting on this information

Magellan Global Strategy Update – June 2017

Hamish Douglass, the CEO, CIO and Lead Portfolio Manager (Global), discusses why rising tech stocks are still well priced, the strategy driving Amazon’s purchase of Whole Foods and what this means for other retailers. Click here to view video

2017 Federal Budget Analysis

First home savers, downsizers and small business are the winners in Treasurer Scott Morrison's second Budget – while taxpayers face an increase in the Medicare levy....read more

Magellan Global Strategy Update – March 2017

Hamish Douglass, the CEO, CIO and Lead Portfolio Manager (Global), discusses why capital preservation is important, gives his five biggest risks for global markets and explains why he is cautiously optimistic about President Donald Trump’s pro-growth. Click here to view video