Self Managed Super Property

Self Managed Super to buy Property

Superannuation is the retirement or pension program set up for Australians. This has an important element where employers pay an extra amount to their employee’s wages. Australian residents may opt to place their super guarantee payments and their personal super contributions into a superannuation fund independently managed or they could decide to run their own self managed super fund (SMSF). After the Superannuation Industry Supervision Act 1993 was changed during 2007, super funds may borrow money for investment properties. At one time, SMSFs could not gear any property investments because many SMSF did not have the money to purchase any property outright and were not permitted to borrow. The 2007 amendment allows SMSFs to take out loans and take advantage of the gearing options to be had.

What self managed super property can you buy?  Commercial and Residential

What self managed super property can you NOT buy?  Owner Occupied

Who holds the title to the property?

• The property is kept in trust with a security custodian holding the title on the property for the self managed super fund.
• Once the loan is paid off; the legal title is passed over to the self managed super fund
• OR once the property is sold off; the legal title is passed over to the self managed super fund for sale.

Further Reading

Taxpayers Australia is a beneficial non profit making educational institution which can be found at http://www.taxpayer.com.au/

More details on the introduction of self managed superannuation funds can be found at: http://www.ato.gov.au/superfunds/content.aspx?doc=/content/00182478.htm