Lending within super (including SMSF’s) has been around for about 4 years now however the bank lending products have only recently become simple enough to make it worth the hassle. It is now quite easy to do, and can be a good option for growing your superfund or getting into property by using your superfund. It also helps people with small member balances get into larger investments.
Interest rates are 0.4 – 1% higher and establishment fees are higher too, but there are very significant benefits to this strategy. Tax rates in Superfunds are lower for a start and there is also the ability for all capital gains to be tax free if the property isn’t sold until retirement. Let me know if you want any more information about this.
