Buying property through your SMSF is an option that many people are now turning to.
It is essential to receive the right advice to structure your fund, but here are some quick tips to get the process started.
Know what you can buy
There are some limitations on what a SMSF can buy. For example, you can buy commercial and residential property, but you are not able to buy vacant land or property under construction.
How does the SMSF fund collect the rent?
All rent gets paid directly into your SMSF and all loan repayments and expenses are paid by the same fund.
It is strongly recommended that professional property manager manages the property. This will ensure it is properly managed, your fund is maximising the income and the agency will be able to collect rent and administer payments.
Turner Real Estate can assist with professional management of your SMSF investment.
How many people can be in the SMSF?
There can be no more than 4 people in a SMSF. Each person must be a Director or Trustee and no member can be an employee.
As part of the fund, none of the members are able to receive payment for administration of the SMSF.
SMSF are monitored by the Australian Tax Office (ATO) and compliance in this area is strong.
What can the SMSF borrow?
Currently, the loan value ratio (LVR) for residential property is 80% and for commercial property is it 72%
Are there tax benefits to a SMSF?
There are many options to how the fund can be structured which depend on a range of factors including:
The best way to minimise your taxation liability with a SMSF is to receive professional advice and set up the fund to suit your needs from the start.
Turner Finance can assist with this advice whilst also offering the very best options in finance lending. With access to over 30 credible lenders in the market place, you can be sure that they will find the very best deal for you.
Call Turner Finance on 1300 228 705 or email us now