SMSF property loans – how do the banks compare?

Co-founder of the Switzer Report
Print This Post A A A

The property market is showing signs of life. Auction clearance rates are up – with Australian Property Monitors reporting clearance rates of 76.3% and 71.6% for Sydney and Melbourne respectively this weekend despite a surge in listings. Sydney’s rate was the highest recorded for some years.

Rising confidence from the sharemarket rally, interest rates with a big figure of five in front of them, the prospect of further out of cycle rate decreases and the natural evening out of excess supply seem to be sparking renewed investor enthusiasm for residential property.

Investing through their super fund is one option on the table for many investors, with an obvious attraction being that if the property is held through to the ‘pension phase’, it will effectively become free of capital gains tax. Most of the banks now offer “super loans” (or ‘Limited Recourse Borrowing Arrangements’ as they are technically referred to under the SIS Act), and as the loan features and costs can be quite different, we thought it was time to review the products available.

Also from this edition