03 Nov 2021

Can I Rent My SMSF Property to Family?

A self-managed super fund (SMSF) is a type of superannuation that has started to increase in popularity among Australians. This type of superannuation is managed by you and can have up to six members. SMSFs are becoming more popular because they allow you to be in control of your retirement by choosing where and when you want to invest your money to grow the funds. One of the most popular ways SMSFs choose to invest is through property. 

Investing in Property Through an SMSF

SMSFs are heavily regulated by the government, meaning there are certain rules you need to follow and certain guidelines you need to meet. Buying property through your self-managed super fund is no exception. If you want to buy any property through your SMSF, you need to understand the following rules: 

  • Your property must solely provide retirement income to fund members. 
  • You cannot buy the property from a member’s relatives. 
  • Members of the fund or their relatives cannot live on the property
  • The property cannot be rented to any member of the fund or their relatives

However, you can purchase a commercial property through your SMSF and rent/lease it to a member as long as they use it for their business. 

If you have a self-managed super fund and are interested in using the fund to purchase property, consult with the experts at Mortgage House. Our experts can help you understand the rules and guidelines you must follow with the property and can help you determine if the costs associated with buying a property are worth the investment.

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