Property has long been recognised as a highly valuable asset class. Investors are keen on buying properties because it represents a lesser challenge to them (everyone is familiar with homes), can be held for long (pure investment rather than mere speculation) and is expected to provide a decent ROI, time and again.
Of late, many investors are using their Superannuation funds to get into the property market. Self-managed Super Fund is a rapidly growing industry and in such a shot time, it has carved a niche for itself. Even while the critics have screamed themselves hoarse over one aspect of it or another, SMSFs have come to well and truly engage our minds.
It is then quite natural that investors look forward to mixing these two weapons for creating a powerful investment strategy for themselves. And this, dear readers, is exactly what’s happening. Many more properties are being bought through the help of SMSF. The strategy can work wonders except that there are a few critical points to consider first. Let us read more into the SMSF borrowing guidelines and also find out that one particular aspect where you can get really stuck (resulting in the erosion of your dollars).