A Trustee of a SMSF may borrow to acquire a single acquirable asset such as residential or commercial property. It may also borrow to acquire a collection of same assets such as shares or managed funds with the same rights and market value. However with a collection the Trustee must acquire the shares or managed funds at the same time and the same price and also sell at the same time.
In order to enter into a borrowing arrangement it must be completed via a Holding Trust as the Trustee cannot borrow directly. The benefits of the NowInfinity system is that a member can build a Holding Trust for smaller parcels or collections at a cost effective price.
Great care must be had when acquiring an asset from a related party as it is generally prohibited unless it is business real property, listed shares or SIS Regulation 13.22C shares or units.
