WHY INVEST IN PROPERTY THROUGH SUPER?
Solid, understandable, and more accessible than you think.
With crypto crashing and share markets dangerously volatile, property remains one of the most solid and understandable investments available. We help you understand and navigate the governments new changes to property ownership.
The trouble for most people is the deposit. But what if you could buy an investment property without saving for one? Using your superannuation through a Self-Managed Super Fund (SMSF) and a Limited Recourse Borrowing Arrangement (LRBA), you can do exactly that.
Imagine Capital provides all the structure, framework, and expert connections to make your super work harder, efficiently, effectively, and with complete clarity.
WHAT WE OFFER
NO DEPOSIT REQUIRED
Use your existing super balance instead of saving for a deposit, get into property sooner.
TAX ADVANTAGES
Leverage the most favourable superannuation taxation laws to turbocharge your investment returns.
BUY IN A FALLING MARKET
Take advantage of falling property prices, a rare opportunity to buy at a significant discount.
NEW OR EXISTING PROPERTY
Flexibility to purchase a new build or an established property, whichever suits your strategy.
EXPERT NETWORK
We connect you with vetted professionals, accountants, solicitors, lenders, who know SMSF inside and out.
END-TO-END GUIDANCE
We take the confusion, trouble, and stress out of the process, from start to settlement and beyond.
WHAT WE OFFER
What is a Limited Recourse Borrowing Arrangement (LRBA)?
Trustees of SMSFs are prohibited from borrowing under the Superannuation Industry (Supervision) Act 1993, with the only exception being under an LRBA. This is the legal structure that makes property investment through super possible.
Under an LRBA, a separate entity called a Bare Trust is established to legally hold the property on behalf of the SMSF. Once the loan is fully repaid, the asset can remain in the holding trust, and the full value belongs to your super fund.
It sounds complex, but Imagine Capital and our network of specialists make the whole process clear and straightforward for you.
LRBA - COMMON QUESTIONS
What happens when an LRBA is paid off?
An LRBA is completed when the loan is fully repaid. At that point, there is no borrowing being maintained, what remains is an asset held in trust for the SMSF trustee. Under ATO ruling SPR 2014/1, the asset may continue to be held in the holding trust after the LRBA has been paid out.
What assets can I buy under an LRBA?
The asset must be a "single acquirable asset" that the fund is legally permitted to acquire, held in a holding trust with the SMSF acquiring beneficial interest. This can include property, shares, units, and collectibles. Collections of identical assets with the same market value under one LRBA, such as units in a single unit trust, are also permitted, but must be treated as one asset and transacted in full.
Can I refinance an LRBA?
Yes, an LRBA can be refinanced, provided the re-financed arrangement meets the requirements of section 67A of the SIS Act. Speak with us and we can connect you with the right professionals to assess your options.
Can I buy land and borrow to build on it?
No. An asset under an LRBA can be repaired or maintained, but cannot be developed using borrowed funds. Talk with us, we can work out how to achieve your goals within the rules and find the right structure for your situation.
Can anyone provide an LRBA loan?
Yes, the lender can be a bank, an individual, another SMSF, or a family trust. You can potentially even lend to yourself. We take the mystery and stress out of this so you can enjoy and genuinely benefit from the process.