Steps to purchasing property in an SMSF

Steps to purchasing property in an SMSF.

Having the opportunity to use your superannuation to purchase a property is a super exciting prospect. This strategy has become widely popular over the last decade. At Crest Property Investments, we have helped many investors purchase the right property to suit their circumstances and the investment strategy.

The founder of Crest Property Investments, Tristan Markulija, was a principal financial adviser and finance broker for many years. Having this clear understanding will help you elevate your financial future,

Here we highlight some of the major steps to purchasing a property in a SMSF.

There is more to it within each point, so please don’t hesitate to contact us if you’d like to talk about it in more detail. There are a number of trusted partners you should use to ensure each step is set up compliantly and correctly. A financial adviser, accountant and solicitor are all important resources.

1. Learn about the the obligations of a SMSF. Understand the limitations and requirements associated to the type of property you can purchase. There are many great investment opportunities but you need to be educated beforehand.
2. Seek financial advise and identify if you have enough funds to purchase a property in a SMSF. You can get a SMSF home loan to increase your budget. Working with a finance broker will enable you to identify your borrowing capacity.
3. Setting up a SMSF requires a variety of legal structures. When purchasing a property, you’ll also require the establishment of a holding trust.
4. Create a bank account within your SMSF so that you can redirect your super contributions into it and also deposit your other superannuation into the SMSF.
5. Transfer your existing superannuation into the SMSF. Advice on the implications of moving funds from a retail/industry fund into your SMSF is important. You may have personal insurance that you’ll lose when terminating your old superannuation fund.
6. It’s time to source an investment property. The fun bit!
7. Settle the property with the help of a solicitor and mortgage broker.
8. Lease the property through a property manager. They will ensure you maximise your rental returns.

There are far more technicalities, but the purpose of this market insight is to share the steps to implement purchasing a property in a SMSF with the assumption, you are aware of what you can/can’t do with this strategy. Owning your own SMF also comes with annual compliance requirements, but that is a topic for another day.

If you want to know more about buying property in a SMSF, feel free to contact us.

Purchasing a property within a SMSF is a great opportunity.

What to do next?

This is one of the best investment strategies for a number of reasons. Careful consideration and knowing what to do is needed prior to selecting a property.

Having control of your financial future is one of the keys to investment and financial success and SMSFs can play a significant part if operating at an optimum level.

At Crest Property Investments, we help source properties for buyers. If you’d like to learn more about buying property, please don’t hesitate to contact us. We would welcome the opportunity to help with your property purchase. Our YouTube channel and Market Insights also provide a wealth of information to assist you with many areas relating to property.

www.crestproperty.net.au

While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more please contact us. We welcome the opportunity to assist you.

May 2023