“Another one bites the dust” Said Craig Mills of Astute Brisbane Central, when he emailed me just yesterday.
The headline he forwarded to me reads, ” SMSF SuperGear changes effective 12th October 2018″
The changes are pretty serious, Commonwealth back have decided to withdraw their Self-Managed Super Fund lending product from the market, following the growing trend of finance providers over the past 12 months who are leaving that segment of the market.
This lending product was a commonly used by Aussies to purchase residential or commercial property within the very “On Trend” thing to do with your Super over the past 5 to 10 years which is Start a Self-Managed Fund and Borrow to money to purchase property.
But for a lot of people finding a bank to lend them money has nearly become impossible.
Many institutions have left Super Lending space, OR have implemented APRA’s recent measures which require at least 40% deposit of the value of the property, in addition to the higher interest rates that banks are now charging.
So what does this all mean for Investors?
I believe that this really tells us a few things;
- Consider your Super position before you jump into a SMSF with the grand plan to purchase property, speak to professionals that are independent and will give you good honest advice.
- Select the correct property, I am personally avoiding off the plan properties given the volatility in the SMSF lending market.