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Superannuation Corner – Direct Property Investment In Your SMSF

No matter where you turn in the press these days, you will inevitably be confronted with any number of property spruikers offering the deal of a lifetime for your SMSF.  So what are the rules that you need to be aware of when considering this type of investment?

The property:

  • Must meet the ‘sole purpose test’ of solely providing retirement benefits to fund members
  • Must not be acquired from a related party member
  • Must not be lived in by a fund member or any fund members’ related parties
  • Must not be rented by a fund member of any fund members’ related parties

However, your SMSF could potentially purchase your business premises, allowing you to pay rent directly to your SMSF at the market rate.

You can also borrow to acquire a property.  We have previously discussed this in detail and the articles can be viewed on our website here and here.

Editor:  The above information is brief and general in nature.  To discuss this in more detail, contact your accountant or send a quick message to JMp’s Superannuation Division.

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