Using a self-managed super fund (SMSF) to buy property is becoming increasingly popular. There are significant advantages including being taxed at a lower rate and the capital gains tax may be discounted or even tax free if the property is sold while the super fund is in pension phase. However, taking out a loan to buy property within your SMSF isn’t as simple as getting a normal home loan. Increasingly, Limited Recourse Borrowing Arrangements (LRBA) are set up using a Bare Trust. Many people buying property for their SMSF often buy first and seek advice later. It's only then they find out creating the right structure and the extra steps required to secure a mortgage can take a lot of extra time. This can quite often make it difficult to secure the property they are wishing to purchase. Seek early advice from professionals who specialise in SMSF and the whole process will run much smoother for you. www.brendanhoman.com.au

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