29/08/2016

So you have been working really hard and building your superannuation nicely over the course of your working life so far (you don't have to be at the end of your career to do this). Perhaps it's time to consider what you might wish to do with it.

Limited recourse borrowing to buy an investment property might be worth considering. There is an exception to the prohibition that exists on borrowing for superannuation funds if that borrowing is a limited recourse borrowing arrangement. These kinds of arrangements are very specific in nature, and often an appealing option when developing an investment strategy for your superannuation fund.

If you decide that limited recourse borrowing is something you might want to do, it is absolutely essential that the correct documentation is prepared. Not only that, but it needs to be executed in the right way and at the right time. That’s where we come in.

We can prepare all the documentation necessary to ensure that this transaction runs smoothly from start to end.

First up, you need to make sure that all the correct documentation is in place in order to set up the holding trust, which will hold the property on trust for your superannuation fund. Cue our super gearing documents package.

Once you sign the super gearing documents, the holding trust deed needs to be lodged for stamp duty assessment. We can assist with preparing documents to apply for this concession or exemption (as applicable per State) for stamp duty on the holding trust deed. This we call our stamping documents package.

Once you have the property, it will most likely be leased and once again it is essential that all the correct paperwork is put in place to keep it all above board – our lease compliance documents package is perfect for this!

We can also do a bank documents review, if your lender is a bank, to make sure they’ve got it right, and related party loan documents if the lender is a related party, just to make sure we have covered every edge of the field.

Basically – whatever you need for your limited recourse borrowing arrangement, we’ve got it covered. And to add the icing on the cake, you will have a team of specialised lawyers working through the process with you, ready to answer any question you may have about the legal aspects of the transaction.

For further information, please contact Townsends Business & Corporate Lawyers on (02) 8296 6222.