SMSF Borrowing for Doctors
- Yves Schoof
- 3 hours ago
- 1 min read
Following the interest generated by our previous content on SMSF borrowing, I wanted to take the opportunity to delve deeper into this strategy, particularly for doctors and dentists looking to own their own practice rooms.
For many medical and dental professionals, superannuation is often one of the first vehicles considered when looking to purchase commercial property. And for good reason. But it's important to understand that the legal structure involved can be quite complex.
Understanding the Legal Structure
When setting up an SMSF borrowing arrangement, there are several key components you'll need in place:
A Self-Managed Super Fund (SMSF)
This must be established with a corporate trustee (a company acting as trustee).
A Separate Holding Trust
If you're borrowing within your super to purchase property, you'll typically need an additional trust again with its own corporate trustee. This is a requirement under current legislation.
Final Thoughts
While this strategy may look complicated on the surface, once it's up and running, it can be fairly straightforward to manage. However, given the complexity of the setup, seeking professional advice is essential both when establishing your SMSF and when entering into a borrowing arrangement.
Book an obligation-free consultation to talk about SMSF setup or borrowing .
