LittleMermaidMember@littlemermaidJoin Date: 2003Post 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.ADParticipant@adJoin Date: 2002Post 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…..
“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.”SaskatoonParticipant@saskatoonJoin Date: 2002Post 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.
FinanceWinteroseParticipant@winteroseJoin Date: 2003Post 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?
CookieDaveCMember@davecJoin Date: 2003Post 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.
Dave hilaryMember@hilaryJoin Date: 2002Post 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!![!]ldp43.Member@ldp43.Join Date: 2003Post 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.
The topic ‘property purchase with Self Managed super’ is closed to new replies.