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Purchase Property in a Self Managed Super Fund

A Self Managed Superannuation Fund (SMSF) can purchase property as part of the Super Fund Investment Strategy.

To purchase a property in a Self Managed Super Fund, the SMSF selects the residential or commercial property to purchase based on normal investment selection techniques. If purchasing residential property, the SMSF must purchase the property from an arm’s length vendor. Non residential property that is being leased for business purposes may be aquired from related parties at full value.

One a property has been selected, it is necessary to obtain an SMSF loan approval. All About Financial Services can assist you with obtaining the best possible deal for your SMSF loan application.

The purchased property must be in the name of the SMSF Propertee Trustee.

Once the property settlement has taken place, the property is motgaged to the lender by the Property Trustee.

The SMSF manages the asset to provide a return on investment.

The Self Managed Super Fund is not permitted to let the property to a member of the SMSF prior to retirement. It is permitted for the SMSF to purchase a property for the investor to live in after retirement, as long as the property is transferred from the Super Fund to the investor after retirement.

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