What happened
Following the 10 August deadline restricting new Limited Recourse Borrowing Arrangements for residential property, advisers at the Class Ignite conference noted SMSF interest in commercial property. Experts highlighted that commercial assets offer income growth but require evaluation of tenant quality, lease terms, and tighter bank funding availability.
Why it matters here
SMSF trustees seeking property allocations can no longer rely on residential borrowing strategies and must instead navigate commercial real estate. Managing longer vacancy periods, commercial lease terms, and cautious bank credit policies requires careful cash flow planning to maintain retirement income streams for self-managed super funds.
What to watch
Major Australian bank policy announcements regarding commercial loan conditions and credit availability for self-managed superannuation fund borrowers over the coming quarters.
Source
class.com.au