By Robert Kirk
As a result of the Murray Enquiry, there's been a number of recommendations regarding the axing of any further lending for property using money in Super.
It's starting to look very likely that the Government may adopt the recommendations and restrict any further borrowing (SMSF loans). If this becomes a reality, the dates we're hearing are March or April 2015.
David Murray's financial system inquiry recommends banning limited recourse borrowing because of concerns it could, over time, increase risk in the financial system.
It recommends any ban be only on future sales, rather than forcing funds to unwind existing property holdings.
Purchasers are encouraged to act now if a property purchase using a bank loan is part of the investment strategy. Keep in mind that properties that include the lucrative tax free NRAS incentive are also running out. Single contracts are available for properties in Broome and Rockingham.
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