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 will SET UP your SMSF and provide investment education for a better result. We take care of all your administration, accounting, ATO lodgement and audit of SMSFs, working with you and your advisors. If you want advice we can arrange one of our recommended advisors and accountants to meet with you, as we do not give advice, but take instruction only. Take control of your super, including property shares and other assets. Learn how to be your own advisor - make better decisions - by being mentored and coached to invest your own super wisely and strategically by qualified partners. Book to come to an event to find out more, or - Call us 0407 361 596, no obligation FREE strategy call.
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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