Should I borrow to buy Property in my Self-Managed Super Fund?

Self Managed Superannuation Funds Simplified

SMSF Simplified

SMSFs can buy a property – two ways

  1. Outright for the full value and purchase costs, legal etc

Borrow to purchase, section 67(4A) SIS (SMSF can’t directly borrow, only acquire by instalment s)

    1. Need about 30% deposit + costs
    2. Special loan (Limited or No-Recourse loan) where the lender has security over the property only, and have no security over other SMSF assets
    3. Special Structure required – Bare Trust borrows and “holds” property within it, until loan paid out, and  avoids Stamp Duty and CGT and GST when transferred back to the SMSF
    4. SMSF has a beneficial interest
    5. Once loan repaid, legal ownership is transferred to the SMSF
    6. Expenses – Set Up can be up to $10,000

      Property in self managed super SMSF superbenefit

      Property, SMSF

We’ll cover more details in the next post

To learn more about this and the following topics –

  1. What’s involved in an SMSF and does it suit you?
  2. I want my business to be my super – can I do this and how?
  3. Should I borrow to buy property for my SMSF?

see Seminar page


About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
This entry was posted in SMSF Basics - all to know, SMSF Property, SMSF Seminars, Super Law & Compliance and tagged , , , , , . Bookmark the permalink.

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