Using Self-Managed Super Fund to Buy Investment Property  Super Fund to Buy Investment Property can be a great way to diversify your superannuation investments. However, it’s important to understand the risks involved and ensure you are fully informed. Investing in property with your SMSF is a significant commitment and it is not something you should do without the appropriate advice.

It’s essential to get the right advice before buying property with your SMSF, as there are a number of rules that must be adhered to in order to avoid a breach of regulations. It’s also important to consider the cash flow and repayment capacity of your SMSF before making any property purchases. This will ensure that your SMSF has enough money to make loan repayments and cover any ongoing costs associated with the property.

Investing Smartly: How to Navigate Melbourne’s Property Market with Your Self-Managed Super Fund

Residential SMSF investment properties cannot be used by the members or their relatives (including children), and must be rented out to a third party for a market rate of rent. However, it is possible to purchase a commercial property and lease it to yourself or your business, provided that it’s done on an arm’s length basis and that the rental rate reflects the commercial market.

SMSFs are highly regulated and it’s important that all trustees, including those who manage the fund, have the skills to ensure compliance and understand their obligations. If you’re considering setting up an SMSF, it’s essential to talk to a financial adviser and/or accountant to ensure you have the necessary skills to run a self-managed superannuation fund.