Can an SMSF buy a commercial property?
Yes. This is the method of property purchase that is allowable for SMSF. As laid out by the ATO you can only buy property through your SMSF if you comply with the following rules.
- Must meet the ‘sole purpose test’ of solely providing retirement benefits to fund members
- Must not be acquired from a related party of a member unless commercial property.
- Must not be lived in by a fund member or any fund members’ related parties
- Must not be rented by a fund member or any fund members’ related parties.
But your SMSF can purchase business property such as your own business’ premises. This is an attractive option for SMSF trustees as it allows you to pay rent directly to your SMSF at the market rate. Many SMSFs choose to do this to help them to grow their SMSF fund for their retirement, and instead of paying rent to a landlord/third party with no financial gain.
Disclaimer: This information should not be considered personal financial advice as it is intended to provide general advice only. This factsheet has been prepared by Superhelp Australia Pty Ltd without taking into account your personal objectives, financial situations or needs.
The information contained in the fact sheet may not be appropriate to your individual needs, therefore, you should seek personal financial advice before making any financial or investment decisions.
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