Testimonials


I had no idea where my lost super was or the names of the funds. I just new it was scattered everywhere and I should definitely have more than $3,000 in my super. Australian Super Finder found all 7 of my funds and now my balance is almost $50,000. Thank you so much for getting my super back on track. ? Leonie, Thomastown VIC


Super Facts and Tips

Buying Property with Self-Managed Super Fund

Buying a commercial property through self-managed super fund can include and office or other commercial dwelling that can be used by your business. A self-managed super fund can also purchase commercial property that the fund's members already are in our outside of super, and may wish to use to do that. However, it's a strategy that's not right for everyone. A requires real financial, tax and legal advice.

Purchasing a Commercial Property

It may or may not make sense to buy a commercial property that you already own when you're already a member of a self-managed super fund. There are excellent several reasons to consider purchasing commercial property inside an SMSF, especially if you already own that property in your personal name or a business name.

You can't transfer your residential property into your SMSF but you can transfer your commercial property, and the fund can borrow to make that purchase. It's a process with great benefits. But it's not for everyone.

Why go into Debt to Purchase your own Commercial Property?

When your SMSF purchases your commercial property, the money it borrows goes to you and can be re-invested in your business. Then, if your SMSF chooses to sell the property after you've retired, and you've reached the pension phase, it should pay no CGT. Or course, when you sell the property to the SMSF, you may have to pay capital growth.

However, if you are a small business owner, and you meet certain strict criteria, you may have to reduce or disregard your capital gain. There are also some concessions that are available, but it's best to seek the advice of a professional. Most business owners think of commercial property as a superannuation anyway. This simply happens to make the entire process earlier, and it may be more tax-effective.

And think of the benefits. The SMSF preserve all of the rental income and capital growth. Potentially a hefty amount of income tax may be saved down the track. And the significant amount of cash is also unlocked for use in the business. Further, the interest expenses maybe claimed as a tax deduction while you're in the accumulation phase. Once again it potentially reduces the tax deduction liability.

If you're planning on buying a commercial property with a self-managed super fund, you can find more information about the subject at www.australiansuperfinder.com.au

All information on this website is of a general nature only. We have not taken into account your financial situation, needs or objectives. You need to make up your own mind and ascertain yourself if it is right for you. We recommend you read the product disclosure statement(s) and the financial services guide before making any financial decision.

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