In certain circumstances, an SMSF-owned commercial property may be leased to a related business. The arrangement generally needs to comply with relevant superannuation rules and be conducted on commercial, arm’s-length terms.
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About SMSF Loans
A Self-Managed Super Fund (SMSF) loan can enable an SMSF to borrow to purchase an investment property, subject to strict lending criteria and superannuation laws. An SMSF may invest in commercial property, with any rental income and potential capital growth generally retained within the SMSF to support the fund’s investment strategy and members’ retirement objectives. SMSF property investments are subject to specific legal and regulatory requirements Commercial property may be leased to a fund member or a related business in certain circumstances, provided the arrangement complies with superannuation laws and is conducted on commercial, arm’s-length terms. Before borrowing through an SMSF, the investment must be consistent with the fund’s investment strategy and comply with applicable superannuation and borrowing requirements. At Yen Financial Services, we can help you understand the lending requirements involved in SMSF property finance and guide you through the loan application process, working alongside your accountant, financial adviser or SMSF professional where appropriate.
Key Benefits & Considerations
SMSF Property Finance
Depending on your fund structure, lender requirements and investment strategy, SMSF finance may be available for eligible property investments such as:
SMSF property investments are subject to specific legal and regulatory requirements. Before borrowing, the proposed investment should be consistent with the fund’s investment strategy and comply with applicable superannuation and borrowing rules. In certain circumstances, commercial property held by an SMSF may be leased to a fund member or related business, provided the arrangement complies with superannuation legislation and is conducted on commercial, arm’s-length terms.
Questions? You’re covered.
An SMSF loan is a finance arrangement that may allow a Self-Managed Super Fund to borrow money to purchase an eligible investment property. These loans are subject to specific lending criteria and superannuation rules.
Yes, an SMSF may be able to purchase eligible commercial property, subject to the fund’s investment strategy, applicable superannuation laws and lender requirements.
Yes. SMSF loans generally involve additional legal, compliance and lending requirements. Lenders may also apply different criteria, loan-to-value limits, documentation requirements and interest rates.
SMSF property investment can involve legal, tax, financial and compliance considerations. It is important to obtain appropriate independent advice from qualified SMSF, accounting, legal or financial professionals. Yen Financial Services can assist with the lending and finance process.