Business real estate is among the few types of assets that SMSFs are permitted to acquire from their members and other related parties.
Business real estate is one of the few types of assets that funds can lease to related parties – including fund members and their businesses – without a restriction on its value.
Generally, an SMSF is barred under the in-house asset rules in superannuation law from leasing or having investments with related parties involving assets that are worth more than 5 per cent of the fund’s total market value. Business property is among the few exceptions to the rule.
SMSFs are prohibited from acquiring residential real estate from related parties – even if the market value is paid.
An SMSF can be the sole owner of a property or hold a property with other investors, commonly using a unit trust or joint-ownership arrangement.
Some SMSFs enter arrangements to hold property with their own members or with other SMSFs. This enables the funds to invest in otherwise unaffordable properties.
Our successful property investment program is aimed at people with more than $250,000 inside their present super funds, but don’t forget that an SMSF can have up to six members. Think of the potential this has for you and your family!