Superannuation Funds can now borrow to purchase real estate. The Superannuation Industry Supervision Act was amended in September 2007 to allow super funds to borrow against assets such as residential property or gearing of shares. Couple this with the Choice of Superannuation legislation introduced in July 2006, allow many more Australians then ever before to take their super at work, set up a SMSF and choose their own investment strategy, including borrowing within the SMSF to purchase an investment property of their choice. Property gearing within your SMSF has the following benefits:

• Choice of residential and commercial property
• A super fund can purchase the premises a business is operating from
• The property will be held in a special purpose trust
• The legal owner will be the property trustee
• The beneficial owner will be the SMSF
• The SMSF is the borrower and the lender has no recourse to any assets in the SMSF
• Minimal Capital Gains tax on eventual ale of property
• The sale proceeds can be dealt with so that they may never attract tax in the future
• Depreciation benefits

A ProInvest adviser will help you implement the strategy and guide you through every step needed in acquiring property through your super fund.