Can I Rent My SMSF Property to Family?
Unfortunately, you cannot rent your SMSF property to your family. In fact, if an SMSF-owned property is decided to be an investment rental property, it cannot be rented to any of the fund’s trustees or their family members. Self-managed super funds are a form of superannuation that is managed by the account holder and trustee allowing them to make all decisions regarding investments. Up to six trustees can manage an SMSF together to increase their personal wealth and financially prepare for retirement.
Trustees looking to purchase investment properties with their SMSF need to have a clear understanding of the rules and regulations in place. SMSF investments must generate a returned profit that will be dispersed through the existing trustee’s retirement savings fund. In addition to SMSF properties being barred from allowing family members to rent, investments cannot be purchased from a trustee’s family member. Trustees and their families also cannot live on an SMSF-purchased investment property.
Commercial property investments that have been purchased by an SMSF can be rented to the trustee’s family if the rented space is being used for business purposes. It is essential for investments to follow the established regulations to avoid getting into legal and financial trouble.
The following investments can be purchased with an SMSF and generate returned income to fund retirement savings:
- Australian and international shares
- Non-related businesses
- Overseas investments
- Term deposits
- Cash and bonds
- Managed funds
- Commercial and residential properties
Contact Mortgage House today to speak with SMSF experts for personalized advice and assistance with investments.