All Topics / The Treasure Chest / property purchase with Self Managed super

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of LittleMermaidLittleMermaid
    Join Date: 2003
    Post Count: 9

    My husband and I are in the process of setting up a self managed super fund on the advice of our accountant/financial advisor. Does anyone know if the funds can be used to purchase residential property. I was told only commercial property but we live in Qld and I am not sure whether the rules vary from state to state.[;)]

    Profile photo of ADAD
    Join Date: 2002
    Post Count: 636

    I think the basic rule is the fund cannot borrow money but it can certainly hold the residential property if it owns it outright. Correct me if I am wrong Financial gurus…..

    AD [:0)]

    “Character cannot be developed in ease and quiet. Only through experience of trial and suffering can the soul be strengthened, ambition inspired, and success achieved.”

    Profile photo of SaskatoonSaskatoon
    Join Date: 2002
    Post Count: 112

    Hi Little Mermaid,
    can I suggest that you borrow or buy “DIY Superannuation” by Austin Donnelly. Since you have already started the process this book should give you more knowledge to help you achieve your goals.

    Terence McMahon

    Profile photo of WinteroseWinterose
    Join Date: 2003
    Post Count: 31

    Can joint venture be set up where the superfund provides the deposit and my trust borrows the balance? Any accountants/gurus out there?

    Profile photo of DaveCDaveC
    Join Date: 2003
    Post Count: 79

    Hi Little Mermaid

    Yes!! You can buy residential property with your self managed super fund but as has already been pointed out the big disadvantage is that you can not leverage your money for the purchase of the asset.

    My understanding is that you can live in the property even as one of the beneficiaries of that super fund.

    Take care
    Dave [:)]

    Profile photo of hilaryhilary
    Join Date: 2002
    Post Count: 146

    Cookie, your smsf cannot borrow, nor can the property have a debt against it- so – the joint partner cannot have a mortgage over this property, but [;)]if the mortgage is against an unrelated property, then that’s ok. Phone the super hotline if in doubt, but make sure you get their decision in writing – they’ve been known to change their minds!![:(!]

    Profile photo of ldp43.ldp43.
    Join Date: 2003
    Post Count: 10

    Hilary is correct.

    A super fund cannot have a charge over any of its assets. However SMSF can pay cash for all or part of a property providing any other part owner pays cash. The other part owner may use equity in their own home eg to raise the cash.

    Members of the SMSF cannot rent the IP. A SMSF must have a Sole Purpose of providing retirement income, a member cannot benefit directly from any of its actions before that time.



Viewing 7 posts - 1 through 7 (of 7 total)

The topic ‘property purchase with Self Managed super’ is closed to new replies.