Specialist SMSF Services
SMSF & Property
Unlock your super fund's true potential with specialist SMSF tax and property advice.
Jump to:
Everything you need to know about property in SMSF.
Over the last ten years Australian laws and regulations have become more accommodating to investors when it comes to using superannuation to acquire property via borrowings.
With a SMSF you can unlock your Super’s true potential by purchasing property to expand your asset portfolio, providing you with a healthy source of income after you retire.
Your Super is a valuable asset which could be working harder for you today, to give you the freedom you deserve in the future.
As SMSF specialists, Easy Super provides you with almost 20 years of SMSF experience. We’re able to answer all your questions on property in your super fund and can guide you through complex regulations with expert advice. Why not chat to Natalia today?
Our SMSF property services
Adding Property to your SMSF Portfolio
Firstly, your SMSF investment strategy needs to allow for property investment.
We can guide you through the complexity of the rules around SMSF borrowing, commercial property vs residential property and six different ways on how to buy property in a SMSF.
Buying or Selling Your SMSF Property
There are clear regulations that guide the buying or selling the property in a self managed super fund.
We’re able to walk you through that and provide tax advice, particularly around any capital gains tax your SMSF property may have attracted.
SMSF Property
Advice
Whether you want to develop commercial property, add an overseas property to your fund or have a question about living in your SMSF property when you retire, we can help.
Natalia is always available with expert SMSF property advice.
Property in SMSF has stringent regulations. The most common queries that trustees comes to us with include:
- Buying a property with a SMSF
- Buying overseas property with a SMSF
- Capital gains tax on property
- Penalties for living in a SMSF property
- Selling your own investment property to your SMSF
- SMSF loans and borrowing
- Property development in SMSF
SMSF Property: Frequently Asked Questions
Click to read more.
Yes, you can buy land and develop a property in SMSF. You will need to have enough funds in your SMSF to cover the purchase and development costs. If your SMSF borrows the money to buy property, this property can not be developed. There are other ways to buy and develop property in a SMSF which you can contact us about.
Watch Natalia’s SMSF and property development video on our home page.
No trustee, member nor anyone related to the fund can live in or rent a property owned by that SMSF. However, if you wish to live in your SMSF property when you retire then the SMSF will need to sell you that property, as long as the rules governing SMSF property sales are adhered to. The property could also be paid out as a lump sum to yourself after retirement.
The risks of investing your super fund into property need to be evaluated in each case by the trustees, and this is where the expert advice of Easy Super can help.
Everyone’s situation is different and you should talk to your financial adviser if investing in property is a good idea for your SMSF.
As general information only, the pros of investing in property can include:
- Growing your super balance faster with the right property
- Paying less capital gains tax
- Financial leverage
- Ability to buy commercial property
The cons that need to be carefully considered include:
- Higher property loan costs for SMSFs
- Only your fund is permitted to repay the loan so you must maintain good liquidity and cash flow
- Associated risks of property such as non-paying tenants.
Yes a SMSF can sell residential or commercial property to a member but the transaction must meet the ‘arms-length’ rule, meaning that the sale must be treated as any commercial transaction, as if no relationship existed between the two parties.
No. Property owned by a SMSF cannot be lived in or rented by any member, trustee or any other related party.
SMSFs can generally borrow up to 70% (and in some cases up to 80%) of the property value. Each financial institution will have its own rules around loans to SMSFs, and whether that loan is for commercial or residential use. It’s important to ensure you have enough liquidity in your fund to put down a deposit, pay for all initial transaction fees and cover short term loan repayments.
Before you buy a SMSF investment property
Download this free guide. Our team explain everything you need to know before buying a property with your self managed superannuation fund.
In this guide we cover:
- The superannuation Industry supervision (SIS) rules
- Rules governing property acquisition
- Rules governing property usage
- Establishing a SMSF for property investment
- ABN and TFN requirements
- Opening a bank account
- Rolling over your existing super funds
- The type of structure required to borrow investment funds
- Common mistakes
Easy Super makes SMSF property, super easy
Chat to us about setting up your SMSF property.
Super Consulting Pty. Ltd.
- 19 Selby ave, Dee Why NSW 2099
- 1800 327 978
- 0432 366 690
- enquiry@smsfconsulting.com.au
-
Mon - Fri 9AM to 5PM
Sat 9AM to 5PM
Sun Upon Request
Blog
Are you over 55 and thinking about selling your home? You could help boost your super while you’re at it. Check out our latest article and consult with us if anything in the newsletter raises questions.
Are you over 55 and thinking about selling your home? You could help boost your super while you’re at it. Check out our latest article and consult with us if anything in the newsletter raises questions.
Are you over 55 and thinking about selling your home? You could help boost your super while you’re at it. Check out our latest article, and consult with us if anything in the newsletter raises questions.
Disclaimer: All information on this website has been prepared without taking into account your individual objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness with regard to your objectives, financial situation or needs. Speak to Natalia for SMSF advice.