Heffron releases Latest quarterly SMSF Borrowing Data Report

Independent SMSF service provider Heffron SMSF Solutions has today released its latest ¼ SMSF Borrowing Data Report.

“SMSF borrowing continues to be a “hot” issue” says Duane Pinches, Head of Document Services.  “As one of the largest independent SMSF administration firms, our SMSF Borrowing Data Report is designed to provide some real data concerning the number of SMSFs who have Limited Recourse Borrowing Arrangements (“LRBA”) in place”

The Table Below shows the number of LRBA documents that Heffron SMSF Solutions have put in place for Fund Administration clients (financial year).

“The data shows that LRBAs are growing, albeit off a small base, and it continues to be quite a small proportion across all of our funds.  This is also reflected in ATO data in relation to the whole SMSF industry.”

“It also interesting to note that the majority of LRBA loans put in place have been in relation to investment properties verses commercial properties.  Of those, 86% have been advised by a Financial Adviser, reflecting the increasing role that Financial Advisers are playing when it comes to property investments.” Says Mr Pinches.

“In our experience, the involvement of a licenced Financial Adviser in the LRBA process will generally mean that the SMSF trustee has received advice about the property investment and the “ins and outs” of the LRBA structure.  This is contrary to popular belief that SMSF trustees are entering these arrangements without any advice or guidance.” says Mr Pinches.

To view a table showing the number of LRBA documents that Heffron SMSF Solutions have put in place for Fund Administration clients in recent years, click the following link: HEFFRON MEDIA RELEASE – 2014 Quarterly Borrowing Data Report.