Many people ask us and our partner advisors – how can you own or borrow to buy Property in my SMSF – Self-Managed Super Fund? Here are the facts, and you can get all the details in our coming May seminar in KNOX, Melbourne (FREE) SMSF and Property Investment
SMSFs can buy a property – two ways –
- Outright for the full value and purchase costs, legal etc, and/or –
- Borrow to purchase, section 67(4A) SIS (SMSF can’t directly borrow, only acquire by instalment)
- Need about 30% deposit + costs approx 10%
- Special loan (Limited or No-Recourse loan) where the lender has security over the property only, and have no security over other SMSF assets
- Special Structure required – Custodian/Bare Trust that borrows and “holds” property, until the loan is paid out, and avoids Stamp Duty and CGT and GST when transferred back to the SMSF (with the right clauses)
- SMSF has a beneficial interest
- Once loan repaid, legal ownership is transferred to the SMSF
- Expenses – Set Up can be up to $3-10,000 (ask us about our competitive costs)
We’ll cover more details in the next seminar at Knox – SMSF and Property Investment
To learn more about this and the following topics –
- What’s involved in an SMSF and does it suit you?
- I want my business to be my super – can I do this and how?
- Should I borrow to buy property for my SMSF?
- Can stock market shares be included in the investment mix?
see Seminar page Property Boost to Super
Want to know the options and how property works in SMSF?
See our next Seminar with Property Friends.
Or call for free education, or to speak to an advisor about your specific situation. SuperBenefit works with SMSF trustees to CONNECT them with the advisors they need. A call is Free. If you have any questions, why not give us a call – it’s FREE!
No obligation. 0407 361 596, Paul