INTRODUCTION

Recent changes to superannuation legislation have provided an opportunity for Self Managed Super Funds to purchase an investment property, without the need to pay the full purchase price upfront.

Australians have long had a love affair with property and, with the creation of the Babcock and Brown Superannuation Property Instalments (SPI) Plus facility, your Self Managed Super Fund (SMSF or superfund) can purchase an investment property with as little as 20% of the property valuation as deposit. Babcock & Brown SPI Plus will lend you the balance.

SPI PLUS FEATURES

SPI Plus uses a non-recourse loan facility, which ensures that other investments within your super fund or investments held by members outside the super fund are not required as security for your investment property. The structure is completely stand alone, there are no third party guarantees required.

SPI Plus gives you the flexibility to tailor your principal repayments. Each year we will ask you whether you’d like to continue on an interest only basis, or if you’d like to make a principal repayment. The choice is yours. Of course, if your circumstances change and you no longer want to continue with SPI Plus, you have a number of options to terminate early.

If, when your property is sold, the property sale price is insufficient to repay the outstanding debt we will not ask your super fund, or its members, to make up the difference. You can simply walk away.