You may have heard of people who buy property using their super. The super fund might need to borrow money to purchase the property.
Self-managed superannuation funds can borrow in very restricted circumstances, one of which is through setting up a limited recourse borrowing arrangement.
A limited recourse borrowing arrangement requires the following documents:
- A self-managed super fund to be set up with its own trust deed
- A custodian deed or bare trust deed (which is this document)
- A limited recourse loan agreement
- A lease agreement (if the property is commercial property and being leased back to a business owned by someone who is a member or related to a member of the self-managed super fund).
The property is owned in the name of the custodian. You may need to set up a new company to be the custodian. Speak to your accountant or lawyer to make sure the arrangement is set up properly.
The purchase of this example template comes with 15 mins of free advice on how to use the template from Specialist Law lawyers. Please call 02 7200 8200 to claim your free 15 minutes.
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