Hi Chris, Is borrowing for commercial property in a Unit Trust (where the SMSF owns 50% or less units) easier than a LRBA within a SMSF, or does it face the same restrictions?
It depends what you mean by easier. I would argue it adds another level of complexity and cost - but it all depends on the situation. A SMSF can generally only invest in a geared unit trust if the trust is not a related party of the SMSF. LRBAs will be suitable for most situations, rather than a unit trust, but I would strongly suggest obtaining personal advice prior to implementing anything. This is a very complex area that requires personal advice.
Hi Chris,
Is borrowing for commercial property in a Unit Trust (where the SMSF owns 50% or less units) easier than a LRBA within a SMSF, or does it face the same restrictions?
It depends what you mean by easier. I would argue it adds another level of complexity and cost - but it all depends on the situation. A SMSF can generally only invest in a geared unit trust if the trust is not a related party of the SMSF. LRBAs will be suitable for most situations, rather than a unit trust, but I would strongly suggest obtaining personal advice prior to implementing anything. This is a very complex area that requires personal advice.
Hi are u an SMSF accountant, and can u provide these services
This is not a service we offer unfortunately