Buying a Residential Property in a SMSF

There are several compliance issues that need to be considered and dealt with. Please contact Supercorp before signing a contract. In addition, advice should be sought from your accountant and your solicitor.

Firstly, the property must be purchased on the market and NOT from any related party. That means it cannot be purchased from a member, relative or related entity (company or trust). “Purchased” includes a non-cash or in-specie transfer.

Secondly, the correct names must be used for the super fund. This means that both the trustee names and the fund name must appear on the contract. If there is a company as trustee, that company name and the fund name will appear on the contract as the buyer. If there are individual trustees, all their names plus the fund name will appear on the contract as the buyer.

Thirdly, rent must flow to the super fund after settlement. It is particularly important to note that a related party (say a member or a relative) CANNOT be the tenant, even overnight.

Please ensure that copies of the contract and the settlement letter are forwarded to Supercorp.

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