Lending within super (including SMSFâ€™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 isnâ€™t sold until retirement. Let me know if you want any more information about this.