Can SMSF Own Part of a Property?

Yes, technically SMSF can own part of a property as long as the investment complies with the rules and regulations set in place by the Australian Taxation Office. It is important to remember that SMSF investments need to generate profit that benefits the member’s retirement funds, and investments cannot be personally enjoyed by the SMSF members. 

If an SMSF member is looking to own part of an investment property, the investment needs to comply with the following rules and regulations:

• Investment property must pass the ATO’s sole purpose test
• Investment property cannot be lived on or rented by any of the members or their family members
• Investment property cannot be purchased from a member of the fund or family members
• Investment property must solely provide retirement benefits to the SMSF members

It is important to speak with a financial advisor, lending specialist, or mortgage broker with SMSF experience prior to investing in any assets. This is because SMSF members take sole responsibility for the fund and can face legal and financial troubles if investments do not comply with the ATO’s rules and regulations. 

SMSF can purchase a wide variety of investment assets, including the following:

• International and Australian shares
• Managed funds
• Non-related businesses
• Cryptocurrencies
• Cash and bonds
• Overseas investments
• Commercial and residential properties
• Term deposits

Interested in learning more about SMSF investment assets? The Mortgage House professional lending specialists and expert financial advisors are experienced in assisting SMSF members with planning for retirement successfully and making profitable investments. Click here to learn more!