05/08/2026
💸SMSF borrowing ban sparks fears for property sales💸
The Federal Government's move to ban new self-managed super funds (SMSFs) from borrowing to purchase residential property will have a massive effect on the investor market warns KR Peters Director Peter Nicolls.
From 10 August, SMSFs can no longer set up new limited resource borrowing arrangements (LRBAs) to buy residential investment houses or units.
While the change won't affect existing SMSF property loans or funds that already own residential property through an LRBA, it will prevent new borrowing arrangements for future purchases.
KR Peters Director Peter Nicolls believes the reforms will have significant consequences for the property market.
"This ban will have a massive effect on sales," according to a recent six monthly forecast for the National Apartment Pipeline by Charter Keck Cramer which said that 22,000 of the 23,000 off the plan units being marketed nationally are in projects of 20 or more units which rely on SMSF Buyers to underpin early presales.
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The Federal Government's move to ban new self-managed super funds (SMSFs) from borrowing to purchase residential property will have a massive effect on the investor market warns KR Peters Director Peter Nicolls. From 10 August, SMSFs can no longer set up new limited resource borrowing arrangemen...
