How to buy a property with a Self Managed Super fund

Buying direct residential and commercial property with a self managed superannuation fund has been a popular strategy for many Australians for many years, however it wasn't until July 2010 that the Government clarified the legislation and regulations that allow self managed super funds to borrow monies in order to fund a property investment by the fund. Prior to this date, funds needed to be very large in order for them to be able to fund the purchase without any loans, so this strategy tended to be mostly used by ultra high net wealth individuals.

Today, it is a strategy increasingly used by average Australians who want to have the transparency that a direct property investment provides. As at 2011, it still only comprised of 4% of total super balances, according to the ATO statistical estimates report dated December 2011. 

What are the benefits of owning a property via your self managed super fund?

There are also some negatives aspect of owning a property within a self managed super fund. To discuss further and find out how best to structure a residential or commercial investment property with your self managed super fund, contact our experts today for a complimentary appointment to determine whether it is appropriate for your goals and objectives.