Laiki Bank is the latest institution to launch a special lending facility catering specifically for self-managed super fund (SMSF) investors looking to enter the Australian property market.
Prior to September 2007, investment in property was not an option for SMSFs in Australia. However, changes to legislation late last year have opened up a new avenue of superannuation investment diversification by making property investment possible.
The new option provided by the bank will be known as the Laiki SuperLend facility. It will allow SMSF investors to borrow up to 70 per cent to purchase a residential, commercial or retail investment property.
"This new lending facility gives SMSFs more control while providing investors with access to one of the most stable asset classes for them to invest and grow their retirement funds," Laiki Bank Australia head of credit Steven Pambris said.
"For those investors who wish to invest in property while having a greater control over their superannuation, then this product is one of the best vehicles to maximise this goal," Pambris said.
The product requires no minimum loan amount and can be used to buy any Australian residential, commercial or retail premises, with loans structured up to 15 years on a principle and interest basis.
