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Licensee reports SMSF borrowing uptick

Aleks Vickovich
02 September 2014 — 1 minute read

Diversified financial services company Omniwealth has seen a rise in consumer enquiries regarding borrowing within SMSFs, but other practitioners are not convinced.

Speaking to SMSF Adviser, Omniwealth Service managing director Matt Kidd said his client-facing staff – which includes accountants, financial planners, mortgage brokers and real estate agents – has seen additional interest from clients in the controversial topic of late.

“There has definitely been an increase in borrowing within SMSF, largely due to clients wanting to buy property,” Mr Kidd said. “It’s clearly a massive growth area and it needs to managed properly.”


Mr Kidd stressed that while his business has been receiving a flurry of activity in terms of client queries about borrowing in an SMSF, only his SMSF specialist staff who truly understand the SIS Act and, importantly, the “way banks understand the legislation” are allowed to engage with clients on this topic.

However, commenting on social media, chartered accountant and financial planner Tony Perkins, a partner at PDS Shaw & Company and authorised representative of the NTAA-aligned Interprac dealer group, said he has not been seeing the same response from the market.

“I am not seeing any increase [in interest in borrowing within SMSFs],” Mr Perkins said.” As well as being an adviser, I am an SMSF auditor who audits in excess of 100 funds and I have one client who has set up the structure but not yet purchased the property,” he added.

“I have probably had it mentioned maybe another two times but they both baulked at the price to set up the structure.”

Adviser John Strange of Personal Financial Designs in Cairns agreed with Mr Perkins, arguing that he has seen a “major drop-off [in] LRBAs”, but added that the north Queensland property market may also be a factor in his experience.

Licensee reports SMSF borrowing uptick
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