The Do’s and Don’ts Of Investing In Property Through A Self Managed Super Fund (SMSF)

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If you’re considering investing through your self-managed super fund, you’re probably wondering about the do’s and don’ts of SMSF property investment. While investing through your super can yield a whole host of great benefits, you do need to proceed with caution as it is heavily regulated and consistently audited. 

Things You Should Do

If you have a sufficient balance and meet all of the other requirements, you will get to the point in the process where you need to decide on what type of property and where you wish to buy. During the process of choosing there are many things you need to factor in. Before and after signing on the dotted line you should:

  • Create a detailed investment strategy with your advisors that outlines risks, potential returns, cash flow liquidity in relation to the property and ensure this is available to all fund members.
  • Research the areas you wish to invest in and seek professional advice through the Corbwood & associates network regarding the growth and future potential for properties you are interested in. 
  • Comply with all superannuation and taxation laws, ensuring you keep updated SMSF records and update the ATO of any changes as needed. 
  • Understand the specifics and possible challenges related to SMSF loans if additional funds are required. 

Things to Avoid

Conversely, things you should not do when investing with your Self Managed Super Fund (SMSF) include:

  • Buy a property you intend to live in or intend to let family/friends live in.
  • Buy property from friends, family, fund members or their associates.
  • Sell an SMSF property to an associated party at lower than market value.
  • Attempt to invest without qualified financial advice. You can quickly find yourself overwhelmed by the details, or in breach of the legislation.  

The reason to avoid all of these is that they contravene the guidelines set out by the ATO, ASIC and APRA concerning SMSF investing. Should you be audited and are found to be in breach of these guidelines, you may face hefty fines and even jail time. 

Corbwood & Associates Can Help You With SMSF Property Investing

At Corbwood & Associates we can assist you and introduce you to the appropriate professionals that can advise you in the specialised areas. SMSF investing is complex and incredibly detailed, so it is important to have an expert in your corner. 

Our advisors are passionate about helping you navigate SMSF investing and helping you to create a secure financial future. We can support you to do this with minimal stress and in full compliance with all relevant regulations so that your fund can continue to grow and create the retirement you dream of. 

For detailed advice surrounding all the do’s and don’ts of SMSF property investment, contact Corbwood & Associates today on 07 5609 7670.