Purchasing property through your Self-Managed Super Fund (SMSF) is a common practice for people who are looking to set up their super for their retirement. Both commercial and residential property can be purchased through your SMSF but will require the fund to be set up correctly, while also purchasing the property correctly, under strict laws. We can work with your accountant and/or financial advisor to help finance the purchase of a property through your SMSF.
Commercial property purchases through SMSF are common due to the higher rental yields and capital growth associated with commercial property. For business owners, it is also potentially possible to purchase your businesses premises through your SMSF, which could allow you to pay rent directly to your SMSF at the market rate. Financing commercial property through your SMSF is generally capped at 65% of the property’s value.
Buying residential property through your SMSF can seem as a safer option to funding your retirement than purchasing commercial property. Lenders also seem to deem residential property as a safer option and is why they can provide funding of up to 80% of the property’s value.
Don’t have an accountant and/or a financial advisor? Not a problem, just ask and we can refer you to our network of highly skilled and professional accountants and financial advisors.
