Self-managed super ban on property ‘misplaced’
CALLS for self-managed superannuation funds to be barred from borrowing to buy investment property are misplaced, a peak lobby group says.
The push for the ban is based on a skewed perception of the potential fallout from a property market bust, the SelfManaged Super Fund Association says.
Tthe Federal Government is expected to respond soon to key recommendations from the Financial System Inquiry report, released late last year.
Among its recommendations, the report proposes a ban on leveraging self-managed super funds to buy property – potentially including commercial property – using so-called limited recourse loans. However, the association
ddt says the small rise in the number of people using nest eggs to
aal buy investment property is no cause for concern and does not justify a ban on the practice.
Association chief Andrea Slattery said the Government should avoid a ban, but adopt measures to mitigate risk for fund members wanting to gear up by requiring licensing of limited recourse loans advisers.
About 560,000 SMSFs cover nearly one million Australians. About 30,000 new SMSFs are set up each year.