Property the primary destination for LRBAs
Commercial and residential property represent the primary destinations for money borrowed within super, according to a new survey conducted by Money Management.
The survey, conducted during the recent SMSF Association national conference in Melbourne and sponsored by Australian Unity Personal Financial Services, revealed that the major destination for borrowing within super was commercial and residential property and shares.
However property investment was by far the dominant choice for accountants and planners providing advice to SMSFs.
Asked to declare what they regarded as the appropriate use of borrowing with SMSFs, 90 per cent of respondents nominated commercial property, while 67.1 per cent nominated residential property.
This compared to 51 per cent who nominated shares and 47.1 per cent who nominated managed funds or Exchange Traded Funds (ETFs).
Respondents to the survey also clearly signalled they disagreed with suggestions emanating out of the Financial System Inquiry (FSI) that limitations should be placed on Limited Recourse Borrowing Arrangements (LRBAs).
Asked whether such limitations should be put in place, 55.7 per cent of respondents said ‘no' while 34.2 per cent agreed with the proposition.
Recommended for you
Medical grounds are no excuse for compliance failures as a Victorian AFSL is sentenced for failing to lodge annual financial reports.
The balance of ASIC enforcement activity is skewed towards civil rather than criminal cases, but the corporate regulator says it is seeking to redress this balance.
From gym owner to working with private wealth advisers, Shadforth’s Joel Perryman shares his top recommendations for career changers looking to transition into the financial advice profession.
The Responsible Investment Association of Australasia has launched a toolkit to help advisers address the risks presented by artificial intelligence.
