Ever thought of investing your superannuation in real estate?
You can invest in real estate directly through your SMSF. Investments can be made in both residential and commercial property.
A SMSF can purchase a residential property. There are certain restrictions on acquiring property from a person or entity related to a trustee or member of the SMSF. There are also restrictions on leasing the property to a person or entity related to a trustee or member of the SMSF. A SMSF cannot purchase a residential property from a member of the SMSF or a related party, and cannot lease the residential property to a member of the SMSF or a related party.
A SMSF may purchase a property off the plan.
Commercial property can be purchased at market value from a member of the SMSF or related party and can be leased to a business related to a member on commercial terms, including the amount and frequency of rent payment.
This may be an attractive option for business owners:
A SMSF may borrow to fund the purchase a real property - residential and commercial property. The correct structure will need to be in place prior to entering any agreement to purchase. See Limited recourse borrowing arrangement.