Can My Self Managed Super Fund buy an Investment Property?

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Self Managed Super Fund can invest in all types of property including residential, commercial, industrial and listed and unlisted property trusts. There are some specific rules that affect how you use a property bought via a Self Managed Super Fund.

Generally Self Managed Super Funds are not permitted to borrow directly to purchase investments however the Self Managed Super Fund is able to borrow indirectly with a limited recourse borrowing arrangement.  This is a relatively recent change to the super fund rules and means that a Self Managed Super Fund does not need to purchase a property with cash funds.

Owning a property within a Self Managed Super Fund can be significantly more tax effective than investning in a property in your personal name.

Generally a Self Managed Super Fund cannot purchase a residential property from a member or a related party. However the purchase of business real property ie commercial property is an exception.

Please contact us for further information.