Self Managed Super Funds
Commercial property, with its higher rental returns, is particularly attractive to savvy, high-net-worth investors planning for their retirement. However higher rental returns can come with increased risk.
Often business owners buy their own premises and hold it in their SMSF. They then lease it back under an arm’s length arrangement paying market rent.
Investors also need to be aware that there are strict rules in place covering SMSF investment and it is paramount they obtain independent financial and tax advice before signing any sales contracts.
Property can be acquired outright if the SMSF has the funds or the fund can get a loan to buy the property under limited recourse borrowing arrangements.
But lending rules are stricter than if you are borrowing in your personal name, so speak to us if you are considering a purchase and require finance.
Don’t forget you need expert accounting and financial planning advice as there are strict conditions.