Self-Managed Super Funds (SMSFs) operate in much the same way as other superannuation funds, allowing you to contribute throughout your working life. These contributions are invested with the goal of growing your wealth, which will be available to you in retirement.

Thinking about starting a new SMSF? You certainly can! Establishing a new SMSF with the guidance of your accountant or financial planner enables you to apply for an SMSF loan. You will need to present a record of contributions from your previous super funds and secure confirmation from your financial advisor or accountant regarding the transfer of assets to your new SMSF.

SMSFs can invest in residential and commercial properties, but there are conditions to meet:

Properties must be purchased for investment purposes and rented out to unrelated parties at market rates. Investments cannot include property development or construction, and vacant land is typically not permitted. The investment must comply with the Australian Taxation Office’s (ATO) ‘sole purpose test,’ ensuring the fund exists solely to provide retirement benefits to its members. Properties cannot be bought from, sold to, or occupied by fund members, their families, or close associates. Commercial properties owned by the SMSF can be leased to businesses owned by fund members, provided specific requirements are met and rent aligns with market values.

When buying property through an SMSF, the purchase must involve a single title per contract. For example, if you’re interested in a duplex with two titles being sold as one, you must restructure the transaction into two separate purchases with distinct loans. If you’re eager to expand your SMSF investment portfolio or have further questions about SMSFs, reach out to us today. We’re ready to assist you in navigating the complexities of SMSF property investments and offer lending solutions to help you maximise this opportunity.