The use of Self-Managed Super Funds (SMSFs) to invest in property has become popular in Australia. However, Using Super to Buy Investment Property is a complex strategy and it’s important to seek the right advice.

Does super generate interest?

Property investment is a popular strategy for many Australians with strong returns and tax advantages. It’s also a great way to diversify your portfolio, as unlike shares, property has a high level of capital stability. However, before you decide to purchase property through your SMSF, it’s important to understand the rules and costs.

A SMSF can own residential and commercial property, but it must be done at arm’s length and follow strict rules to avoid penalties. These include ensuring the property is used for the SMSF’s investment purposes, and not as your home or personal accommodation. The SMSF must also ensure the property is maintained at an appropriate standard and any loans secured against the asset must be repaid by the SMSF before any other debt.

While there are clear benefits to property investing through an SMSF, it’s essential to seek professional advice before making a decision. This is especially true for those considering utilising their SMSF to buy property, as it can be a complex process with serious consequences if not done correctly.

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