tumblr visit counter
Free SMSF Setup

SMSF and Property

What properties a SMSF can buy?
A SMSF can purchase the following property related investments:

  • Residential property
  • Commercial property
  • Industrial property
  • Overseas property
  • Units in listed/unlisted property trusts
  • Property partnerships with non-related parties
  • Off-the-plan properties
  • Options to purchase off-the-plan properties

The SMSF can purchase a property with or without borrowed funds. When the SMSF borrows from bank or related parties, the loan must be limited recourse.

What properties a SMSF cannot buy:
A SMSF is unable to invest certain property investments that SISA does not allow:

  • Residential property from a related party
  • Property with full recourse loan
  • Property partnerships with related party

The acquisition of the above will breach the in-house asset rule and fail the sole purpose test, therefore they are prohibited by SISA.

What properties investments can transfer to a SMSF:

  • Commercial property
  • Industrial property

Note a residential property can only be bought by a SMSF. If it has been already bought outside of the SMSF, it cannot be transferred to the SMSF.

Enquiry Now

Enquiry Now