One of the most talked about strategies for those with Self Managed Superannuation Funds (SMSFs) is Limited Recourse Borrowing Arrangements (LRBA). This is essentially the mechanism with which a SMSF can borrow funds to purchase an asset, such as a property. Whilst properties are not the only assets that can be purchased this way, they are certainly the most common.
As with most government legislation around superannuation, a LRBA has an unique set of rules and regulations that must be abided by to ensure that you remain compliant.
The team at Total Advice Partners has had extensive experience in advising, establishing and unwinding SMSF borrowing arrangements. It is critical that you get the strategy right from the outset.