A self managed super fund also can’t be rented by you, the other trustee or anyone associated with the trustees. In any case, buying a holiday home in your SMSF and living there during the summer isn’t allowed.
A self managed fund can even use borrowed monies to get one asset, or a set of identical assets that have an equivalent market price. Through Limited Recourse Borrowing Arrangements (LRBA), they are driving the recognition of property purchases in SMSFs. This specific method involves the SMSF trustees receiving the beneficial interest within the purchased asset, while the legal ownership is persisted trust. The upside is that, with an LRBA, your whole super fund isn’t in danger if the loan is defaulted. There also are restrictions on the way a debtor can recover their funds.
At Pinnacle Fortune, we understand that running an SMSF requires knowledge, expertise and time. That’s why we offer you help in setting up and managing your SMSF to buy an investment property. Our specialist team can provide investors with assistance in a variety of ways:
