Self-managed super funds

Self-Managed Super Funds (SMSFs) operate on a principle similar to other superannuation funds. Throughout your career, you make contributions to your fund, which are then invested with the goal of accumulating wealth that will be distributed to you during your retirement years.

Are you contemplating starting a new SMSF? Absolutely, it’s possible! When you establish a new SMSF with the assistance of your accountant or financial planner, you can apply for an SMSF loan. To do this, you’ll need to provide a history of contributions from your previous super funds and receive confirmation from your financial advisor or accountant that your assets are being transferred to your new SMSF.

When it comes to property investments, an SMSF can indeed purchase both residential and commercial properties, with some stipulations:

• The property must be acquired with the intent of investment and must be rented out to an unrelated party at market rates.
• The investment should not involve property development or construction, and vacant land is typically excluded.
• The investment must satisfy the ‘sole purpose test’ of the Australian Taxation Office (ATO), which ensures the fund is maintained for the sole purpose of providing retirement benefits to its members.
• The property cannot be bought from, sold to, or occupied by a fund member, their family, or any close associates. Nevertheless, a commercial property owned by the SMSF may be rented to a business owned by a fund member, provided it complies with certain conditions and the rent reflects current market values.
• When purchasing through an SMSF, only properties with a single title per contract are permitted. For example, if you want to buy a duplex that spans two titles and is being sold as one, you would need to restructure the purchase into two distinct transactions with separate loans.

If you’re eager to grow your SMSF investment portfolio or have further inquiries about how an SMSF can work for you, don’t hesitate to get in touch with us today. We’re here to assist you in navigating the intricacies of SMSF property investment and to help you make the most of your retirement planning.