Zimsen

Borrowings

We have the expertise to help clients to enter borrowing arrangements which meet the strict SMSF regulations of borrowing

If the SMSF has sufficient funds for a deposit, the balance of the purchase price can be borrowed. The SMSF can either borrow from a financial institution or from their parties.

Lending is done with limited resource borrowing arrangements. This means the lender does not have a resource or right on other assets in the SMSF.

The investment property will be owned through a bare trust with the SMSF having a beneficial entitlement. The bare trust is merely the holder of the title until the loan is paid off. After the loan is fully repaid the SMSF has the right to acquire the legal ownership of the investment.

We can also assist clients with the establishment of bare trusts by referring to lawyers in out networks and also co-ordinate documents if your SMSF seeks funding from  the bank.

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