What are the Risks of SMSF Property Lending ? 1
.
There has been a recent rapid increase in borrowing by Self Managed Super Funds
to purchase property.
.
.
According to a recent article in the Sydney Morning Herald,
entitled 'Fears over SMSF property lending',
Self Managed Super Funds are 'splurging' on real estate.
It states, 'A five-fold increase in borrowing to help fund a $40 billion splurge
on property for self-managed super funds has prompted the Reserve Bank of Australia
to warn about further increasing investor debt-load through more borrowing.
The nations monetary mandarins warn the spending and borrowing binge
is "raising concerns" about exposure to increased risks,
such as another market crash wiping out property values,
or interest rate rises creating repayment difficulties.
.
But the research used by the bank and other independent analysis
is based on Australian Tax Office returns
that are at least 12 months old and miss recent boom market conditions
that have pushed up prices and lending.'
.
.
There has been a recent rapid increase in borrowing by Self Managed Super Funds
to purchase property.
.
.
According to a recent article in the Sydney Morning Herald,
entitled 'Fears over SMSF property lending',
Self Managed Super Funds are 'splurging' on real estate.
It states, 'A five-fold increase in borrowing to help fund a $40 billion splurge
on property for self-managed super funds has prompted the Reserve Bank of Australia
to warn about further increasing investor debt-load through more borrowing.
The nations monetary mandarins warn the spending and borrowing binge
is "raising concerns" about exposure to increased risks,
such as another market crash wiping out property values,
or interest rate rises creating repayment difficulties.
.
But the research used by the bank and other independent analysis
is based on Australian Tax Office returns
that are at least 12 months old and miss recent boom market conditions
that have pushed up prices and lending.'
.
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