Purchasing a property with your self-managed superannuation fund
If you plan to be a self-funded retiree, there is an option to purchase property within a self-managed superannuation fund (SMSF).
An SMSF must be run for the sole purpose of providing retirement benefits for the members (trustees) or their dependants.
Unlike mainstream superannuation funds, the trustees of a SMSF are solely responsible for complying with all super and tax laws.
If buying a property in a SMSF to diversify your retirement portfolio sounds like something you would like to do, you need to be aware of the rules.
Any property bought with a SMSF must comply with the following:
- It must meet the ‘sole purpose test’ of solely providing retirement benefits to fund members
- It must not be acquired from a related party of a member
- It must not be lived in by a fund member or any fund members’ related parties
- It must not be rented by a fund member or any fund members’ related parties.
The exception to the above is if a SMSF is purchasing a business premises. This will allow you to pay rent directly to your SMSF, but the rent must be at a true market rate.
Purchasing an investment property with your SMSF can be a great strategy to help fund your retirement in later years without relying solely on Government old age pensions.
Nexhome Finance, a multi-faceted mortgage broking and home loan company on the Gold Coast offer property sourcing services along with construction loans, refinancing, investment loans, vehicle and equipment finance, commercial property finance, insurance and other loan products.
Our property and finance experts have access to over 30 quality lenders so when the time comes to source and finance your investment property within your SMSF, Nexhome Finance have got you covered!
Call Nexhome Finance today on 0412 525 706. We offer a free consultation to our Brisbane and Gold Coast clients.