Buying a property with your SMSF super.

Did you know it’s possible to buy an investment property through a self-managed super fund (SMSF)? An SMSF is a private superannuation fund that can have between one and six members. It’s common for SMSF trustees to consider purchasing investment property through their fund. Investing in property through a self-managed super fund (SMSF) has grown in popularity in recent years, particularly since it became possible for SMSFs to borrow money to fund a direct property purchase. You might also like to know, that buying property through an SMSF can offer numerous advantages. the value of residential properties within SMSFs has surged by over 90% in the past decade, as reported by CoreLogic—a trend indicative of the growing recognition of property investment opportunities within the SMSF framework. Furthermore, recent statistics from the ATO underscore the growing popularity of SMSFs, with over 1,000 new registrations occurring weekly in Australia, contributing to a total of over 500,000 SMSFs and more than 1 million members. While SMSFs offer comparable financial benefits to traditional super funds, their unique appeal lies in granting members personalized control over their investments—a feature that resonates with many prospective property buyers.

Some of the things you should consider first.

1. The property must:

To buy property through an SMSF, you must abide by the following requirements.

? Meet the ‘sole purpose test’ of solely providing retirement benefits to the fund Members.

? Not be acquired from a related party of a fund member

? Not be lived in by a fund member or any fund members’ family.

? Not be rented by a fund member or any fund members’ family.

2. What’s your goal?

No matter what your reason for investing in property it’s important you know

exactly what your goal is. It could be to eventually live off the rent from your property portfolio, to subsidise your income, to have a nest egg for security purposes, eventually pass the property on to your kids or hold it for capital gains purposes. Be clear with your goal and have a strategy in place for how you will achieve it.

Find out if you can. Text your Name and SMSF Super balance to 0418713877.