More than just home loans
SMSF borrowing is now seen as a valuable tool in the accumulation of wealth for many of us.
SMSF administration and advice has become a new source of fee income for many advisers and those selling “investment” properties.
The majority of property lenders on our extensive panel offer loans for SMSF borrowing. As with all types of loans, some are well structured and priced, others are not so user friendly.
AFNCF does not offer investment / superannuation advice in relation to SMSFs – our advice is strictly limited to the loan structure and making the application for a loan on behalf of clients referred to us by other advisers.
We support the concept of SMSF borrowings– but it’s absolutely essential that clients do their homework and understand the implications and limitations of SMSF borrowing as well as the benefits.
In the first two months of 2015 we have come across three (3) instances where potential clients have previously established negatively geared SMSFs (for all the right reasons at the time) but now find that perhaps it wasn’t the best course of action.
Where properties are being acquired for inclusion in a fund, prospective clients need to do their research on the property being acquired. They should also enquire as to whether there is any conflict of interest between the parties – i.e. is the adviser receiving a commission or fee for recommending a particular property or agent.