A Self-managed Super Fund (SMSF) can borrow funds for the purchase of income-producing retail, commercial, rural or specialised properties. This is made possible by the amendments to the Superannuation Industry Supervision Act (SIS), which took place in 2007.
A trustee of the SMSF purchases the property on behalf of the fund. It uses part of the assets held in trust and borrows the balance. The SMSF holds the property in trust as an asset for the SMSF portfolio.
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