Self-Managed Super Funds (SMSFs) operate much like other superannuation funds, where you contribute throughout your career, and the funds are invested to grow your wealth for retirement. If you’re considering starting an SMSF, you can certainly do so. With assistance from your accountant or financial planner, you can establish a new SMSF and apply for an SMSF loan. To proceed, you’ll need to present a record of contributions from your previous super funds and confirm with your financial advisor or accountant that your assets are being transferred to your new SMSF.

When it comes to property investments, SMSFs can invest in both residential and commercial properties, adhering to specific guidelines:

• The property must be purchased for investment purposes and leased to an unrelated party at market rates.
• The investment should not involve property development or construction, and vacant land is typically excluded.
• The investment must satisfy the Australian Taxation Office’s (ATO) ‘sole purpose test’, ensuring the fund is maintained solely to provide retirement benefits to its members.
• The property cannot be bought from, sold to, or occupied by a fund member, their family, or close associates.
• However, a commercial property owned by the SMSF can be leased to a business owned by a fund member if it meets certain conditions and the rent is at market value.

When purchasing through an SMSF, properties must have a single title per contract. For instance, if you want to buy a duplex on two titles sold as one, you must restructure the purchase into two separate transactions with individual loans. If you’re interested in expanding your SMSF investment portfolio or have questions about how an SMSF can benefit you, feel free to contact us today. We’re here to help you navigate the intricacies of SMSF property investment and provide a lending solution that enables you to take advantage of this opportunity.