Borrowing in a self managed superannuation fund to acquire a rental property has been allowed since late 2007. Although there has been a recent amendment to the laws governing the ability of an SMSF to borrow the principle remains.
The key to using your superannuation balance as a deposit on a rental property includes:
- Establishing a self managed superannuation fund (SMSF) with a trusted advisor whom appear to know and understand the issues,
- Rolling over superannuation balances held in industry or retail funds into your newly created SMSF,
- Creating the additional structure that needs to be in place to enable the SMSF to borrow and acquire a property,
- Apply for a loan in the name of the SMSF,
- Find a property
This is quite a simple process, however some of the areas are somewhat specialised and it is not recommended that you leave it to a novice.