Real estate agents on dangerous ground
The Institute of Chartered Accountants of Australia (ICAA) superannuation specialist, Liz Westover has warned against real estate agents promoting the virtues of purchasing real estate within a self-managed superannuation fund (SMSF).
Westover has referred to recent promotional efforts on the part of real estate agents suggesting that the process is straightforward, but warns that this is not the case.
“These issues are never straightforward and there are a range of factors that need to be given due consideration, not only before entering these borrowing arrangements but also before setting up an SMSF,” she said.
Westover said SMSFs were not the best superannuation option for everyone, and should not be established simply as a vehicle to borrow to buy real estate.
“Borrowing can be a valuable tool within an SMSF to bolster retirement savings, but it must be used appropriately and in full knowledge of the facts and all the associated risks,” she said.
Westover urged people looking to borrow within an SMSF for the purchase of real estate to seek advice from a professional rather than a real estate agent.
AUTHOR
Mike Taylor
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