A Self-Managed Super Fund (SMSF) is a private superannuation fund that you manage yourself. Yes, an SMSF can invest in property, providing trustees with direct control over property investment decisions.

No, properties purchased through an SMSF cannot be lived in by you or any other trustees. It must be solely for investment purposes.

SMSFs enjoy concessional tax rates, with rental income taxed at 15%. Capital gains tax on property held for more than 12 months receives a one-third discount, resulting in a reduced tax liability.

You can use a limited recourse borrowing arrangement (LRBA) to borrow funds for property investment. The property will be held in a separate trust until the loan is repaid.

No, SMSFs cannot purchase residential properties from related parties, including members or their associates. This is known as the “related party acquisition” rule.

Purchasing a property through an SMSF involves expenses such as stamp duty, legal fees, property valuation, and ongoing property management costs.

Minor repairs and maintenance can be funded by your SMSF, but significant renovations must be covered by available cash within the fund and not through borrowed money.

Compliance is crucial. Seek advice from professionals well-versed in SMSF regulations to ensure you meet all legal obligations and avoid penalties.

Property markets can fluctuate, affecting property values. Additionally, property investment involves ongoing management responsibilities and possible tenant vacancies.

No, properties owned by an SMSF cannot be rented to you, other trustees, or any related parties. It must be rented at a market rate to unrelated tenants.

Yes, diversifying your SMSF property portfolio can reduce risk and enhance the fund’s resilience to market changes. Consider a mix of residential and commercial properties.

Property is relatively illiquid. If you need quick access to funds, selling the property may take time. Plan your investments with consideration for liquidity needs.

No, SMSF properties cannot be used for personal purposes, including as holiday homes. They must be solely for investment purposes.

Transferring an existing property to your SMSF is generally not allowed. It must be purchased by the SMSF at market value if you wish to include it in your fund.

Yes, SMSFs can invest in overseas property, but there are complex rules and considerations. Seek expert advice before proceeding.