Buying a Property With Your Self-Managed Super Fund in Melbourne

Buying a Property with Your Self-Managed Super Fund in Melbourne

Buying a Property with Your Self-Managed Super Fund in Melbourne  an investment property can be an effective way to diversify your investments. However, there are a number of considerations to keep in mind before you commit to this strategy.

SMSFs can purchase residential and commercial property and have the ability to borrow funds through limited recourse borrowing arrangements (LRBA). However, SMSFs can only invest in properties that are able to generate income through rental or capital growth and must meet the sole purpose test of providing retirement benefits for the fund members.

Strategic Wealth Building: Unlocking the Potential of Melbourne Real Estate with Your Super

When purchasing an investment property through your SMSF, there are also a number of costs to take into account. These can include loan establishment fees, registration fees and the cost of a Statement of Advice. Additionally, there are ongoing expenses associated with owning a property such as council rates, maintenance and repairs, insurance premiums and so on. It is important to budget for these costs when considering investing in property through an SMSF.

Setting up a SMSF can be complex and requires the assistance of a legal professional to establish a trust deed. The trustees of an SMSF can be individuals or a corporate structure and there are a variety of obligations that must be met. Many people choose to use the services of accountants, tax agents and property professionals when establishing their SMSF.

It is essential that anyone who sets up an SMSF fully understands the rules and regulations of the fund and is committed to meeting all of the requirements. It is also a good idea to speak with a financial planner to ensure that investing in property through an SMSF is the right strategy for your personal circumstances.