Purchasing property in your SMSF whether outright or using borrowing requires an attention to detail. We have developed a comprehensive guide on the strategy, the process and the options available to you.
Before you start
Buying Property through your Super – SMSF
Beware of Property One-Stop-Shops when buying for your SMSF
Questions to Ask Yourself Before Considering an SMSF Property Investment
3 Part Guide to Borrowing to Purchase Property in your SMSF
- Property through super in a SMSF – Part 1: Background
- Property through super in a SMSF – Part 2: The Process
- Property through super in a SMSF – Part 3: 20 most common mistakes
- Excellent external Legal article explaining some more detail.The use of a Bare Trust by a Self-Managed Superannuation Fund (SMSF) to borrow money and purchase assets
Strategy Options:
- SMSF Borrowing: What Can I Do With An Investment Property Within The Rules.
- Owning your business property in a SMSF
- Benefits Of Transferring A Business Property In To Your SMSF – Superannuation Strategy
- Stamp Duty on Transfers of Property to an SMSF
- Using your SMSF to plan now for a future downsize and a seachange
- Can I borrow to buy a house and land package off the plan in my SMSF?
- Question on Multiple Progress Payments When Buying a House & Land Package in a SMSF
Related Party Borrowing
#SMSF Property Alert : ATO guidance on related party SMSF loans (LRBAs) – Update
Is your SMSF leasing commercial property: Tips and traps
Complex Strategies
- How a SMSF can Purchase a Property with a Related Party – Using a 13.22c Trust
- SMSF Using an Unrelated Unit Trust for Property Development
- For those who want to know the finer detail I recommend reading this excellent but long paper on SMSFs and Property Development: Opportunities and Pitfalls by Michael Bennett
Exit Strategies / Insurance
- How to Use Insurance to Pay Out an SMSF Property Mortgage on Death or Disability
- Using your SMSF to plan now for a future downsize and a seachange
What to do once the Limited Recourse borrowing has been paid out in full
Tips and Traps of Buying Off The Plan (OTP) Property
- Whoyagonnacall? PART 1: 10 unspoken risks buying off-the-plan
- Whoyagonnacall? PART 2: Five more risks buying off-the-plan
I hope this guidance has been helpful and please take the time to comment. Feedback always appreciated. Please reblog, retweet, like on Facebook etc to make sure we get the news out there to do plenty of research first and only trust those that have earned your trust. As always please contact me if you want to look at your own options. We have offices in Castle Hill and Windsor but can meet clients anywhere in Sydney or via Skype.
Liam Shorte B.Bus SSA™ AFP
Financial Planner & SMSF Specialist Advisor™
Tel: 02 8853 6833, Mobile: 0413 936 299
PO Box 6002 BHBC, Baulkham Hills NSW 2153
5/15 Terminus St. Castle Hill NSW 2154
Corporate Authorised Representative of Veridian Select Pty Ltd ABN 41 621 447 345, AFSL 51572
This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. This website provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.
Muhammad Amin
/ August 15, 2020Rich, that was nicely presented. (I also appreciate the kind way you have answered questions….very much a class act.)
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Katrina
/ February 17, 2020Does the (so called) 90% rule apply to all assets bought in a SMSF or is residential real estate exempt? Assuming there are no exemptions, if i want to use my super to invest in bricks and mortar, but doing so will mean that my exposure is greater than 90%, is that really a ‘problem’ or do I just need to ensure that my investment strategy clearly stipulates that? Thank you.
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SMSF Coach - Liam Shorte
/ February 19, 2020Hi Katrina, you need to think carefully about the lack of diversification and document your reasons and strategy for having high exposure to a single asset or asset class. You just have to show that your strategy is designed to meet your retirement goals, you have considered liquidity, risk and exit strategies. Have a look at https://smsfcoach.com.au/2015/03/04/6-key-considerations-for-your-smsf-investment-strategy/
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Linda Rezek
/ November 8, 2017Hi Liam really enjoy learning more about SMSF. One question I have which I can’t find the answer to anywhere is this:
Can a SMSF (assuming the Deed allows for purchasing property) purchase a property outright consisting of house and land with a a split contract – one with the owner of the land and other with the builder of the house. Land due to be registered in March 2018 with house build to start approx March/April 2018 with estimated finish time of December 2018. Progress payments are required.
All the information I have read refers to single acquirable assets with loan recourse borrowing.
I would appreciate your general advice if this is a possibility.
Regards
Linda
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SMSF Coach - Liam Shorte
/ November 8, 2017Hi Linda
The single acquirable asset restriction only applies to SMSF’s who need to borrow for the finance. A SMSF can enter a split contract House and Land if it is not borrowing. You may find the developer asks you to provide a letter from your Adviser / Accountant confirming it is 100% paid for by the SMSF with no borrowing. you also do not need a Bare Trust etc.
As I don’t know your full circumstances please seek specific personal and SMSF advice before you enter any contract.
Best wishes
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Helen Chandler
/ June 17, 2015Hello,
Could you please advise me on the cost to transfer a house OUT of a SMSF so the trustees can live in it. We are 62 years old and not working.
The house is in Qld, we currently live in SA.
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SMSF Coach - Liam Shorte
/ June 17, 2015Hi Helen
Unfortunately on this blog I am unable to provide personal advice so you should seek specific advcie for your particular circumstances.
In general there are a few items to consider:
If someone is over 60 and not working then we would look to see if they are in pension phase and if not advise if they should move to pension phase before moving any assets.
You will normally be up for the stamp duty. Here is the link to Queensland https://www.osr.qld.gov.au/duties/transfer-duty/calculating-transfer-duty.shtml
You can look at either buying the property from the fund or taking a lump sum ins-specie transfer.
You should also read my article https://smsfcoach.com.au/2013/07/31/using-your-smsf-to-plan-now-for-a-future-downsize-and-a-seachange/
If you want personalised advice from us please email me or call me. liam@verante.com.au 0413936299
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