Hi I was wondering if anyone had any information regarding setting up Self Managed Super Funds, and whether it is worthwhile having your own home owned by the fund and renting it back.
Cheers, Paul
Hi Paul
You are unable to own a residential property and then rent it back to any related party of the fund so that idea is out.
Your Accountant can give you some idea as to the cost of the SMSF Trust Deed and the process involved but to be honest it is not difficult.
Richard Taylor | Australia's leading private lender
Funds held in an SMSF are for the sole purpose of retirement, so any other benefit providd to the members (such as renting SMSF property) is not allowed.
You could talk to an accountant or lawyer regarding setting up the SMSF, but be careful which accountant you choose, as somne have little or no experience with the specific rules and the SIS Act.
thanks guys for your reply, I have heeded your advice and booked an appointment with an accountant recommended to us that is experienced in this area. Thanks again .. Paul
Paul
Of course the exception is if you purchase a Commercial property in the name of the SMSF and then lease it to your own Company to transact business from.
Richard Taylor | Australia's leading private lender
Paul,
I have had a SMSF for nearly 2 years. I purchased a property approximately a year ago. When setting up your SMSF with your accountant, outline exactly what your intentions are, buying a property, shares etc. If you are looking at buying a property the SMSF Deed must be set up so it allows the fund to borrow, my deed did not state that from the outset so it was another cost added to the purchase of the property. The best advice I can give you is find an accountant that knows SMSF, a lot claim they do but have know idea. Also I found the NAB to be the cheapest lender for SMSF.
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