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Modern Houses

PROPERTY
THROUGH
SUPER

BUYING A PROPERTY WITH MY SUPER

Crypto crashing, share markets dangerously volatile and confusing. You want an investment that is solid and understandable. This is a rare time when property prices are broadly falling, making an investment even more attractive now than ever before. 

 

You want to realise your dream of property investment. The trouble is, you don't have a deposit….

What if you could buy that property without saving for the deposit?... and be on your way to financial security?

 

SO, where do we start?

 

USE YOUR SUPER TO EFFICIENTLY AND EFFECTIVELY INVEST IN PROPERTY. 

 

  • IMAGINE CAPITAL offers you the answer… and clear, affordable professional support every step of the way.

  • Buy an investment property… NOW!

  • Use the most favourable taxation laws to turbo your investment.

  • Take advantage of falling property prices.

  • Buy a new or existing property.

  • Use our expertise to make you wealthy.

  • We take the confusion, trouble and stress out of it.

  • IMAGINE CAPITAL will provide all you need to be on  your way to financial freedom.

  • We provide all the structure and framework to make your journey an efficient and excellent one.

  • Take our survey to see if you qualify.

  • Join us to make your future start today!

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LIMITED RECOURSE BORROWING ARRANGEMENT (LRBA) FAQ's

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  • What is an LRBA?

Trustees of SMSFs are actually prohibited from borrowing under the Superannuation Industry (Supervision) Act 1993 (SIS Act) with the only exception being under an LRBA.

 

So to do this, a separate trust entity called a Bare Trust (essentially an empty trust) is set up to legally own the property on behalf of the SMSF.

 

This is known as the “single acquirable asset” in tax terms but keep in the mind that it can actually apply to multiple titles of land such as multiple units on one title, a stratum title where the unit and car park cannot be sold separately or a factory, warehouse or workshop built across two titles.

 

It’s through this structure that you’re able to borrow to invest in property. Bear in mind that you need a new bare trust if you want to invest in another property.


 

  • What happens when an LRBA is paid off?

An LRBA is therefore completed when the borrowing of money is extinguished (that is, when the loan is paid off). Once this happens, there is no borrowing being maintained. What is left is an asset being held in trust for the trustee.


 

  • Does an LRBA asset have to be transferred when the loan is repaid?

The answer is no, with some conditions. The ATO has released SPR 2014/1 which states that the asset may continue to be held in the holding trust after the LRBA has been paid out.


 

  • What assets can I buy in an LRBA?

Under an LRBA, the asset must be a ‘single acquirable asset’ which the fund is legally permitted to acquire and must be held in a holding trust with the self-managed super fund (SMSF) acquiring beneficial interest in the asset.

A single acquirable asset can be any type including property, shares, units and collectibles. It may also include a collection of identical assets with the same market value under one LRBA such as units in a single unit trust or shares of a single class in a single company.

 

Such collections of assets must be dealt with as one asset. For example, disposing of some shares from the parcel of shares acquired under an LRBA is prohibited. The whole collection must be purchased or disposed of within one transaction. Any shares acquired as part of a dividend reinvest plan cannot be part of the arrangement.


 

  • Can I refinance an LRBA?

An LRBA can be refinanced provided the re-financed arrangement meets the requirements of section 67A of the SISA.


 

  • Can I buy land and then borrow under an LRBA to build on it?

The short answer in "NO". An asset under an LRBA can be repaired/maintained but can't be developed with borrowed funds. So, talk with us and we can work out with you how to achieve your goals within the rules.


 

  • Can anyone or any organisation provide LRBA loans?

Yes, they can. Anybody can be a lender. The lender can be a bank or somebody else like an individual or another SMSF or a family trust. You can potentially even lend to yourself.

 

Talk with us, we take the mystery and stress out of investing with your super, so you enjoy and benefit from the process.

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