07 Oct 2022

Can You Buy a Holiday House with SMSF?

Buy a Holiday House

Self-managed super funds are a type of private fund that is completely managed by the members or trustees. SMSF is a great choice for someone looking to financially prepare for retirement through specific investments that generate a returned profit. The returned profit is then allocated to the existing member’s retirement savings and can be accessed when the SMSF members meet retirement age.

Existing and potential SMSF members or trustees may wonder what investments and purchases are allowed using SMSF funds and if they can buy a holiday house with SMSF. Yes, you can buy a holiday house with SMSF if it falls within specific rules and regulations:

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

There are also countless other types of investment assets that can be purchased using an SMSF, including the following:

  • Australian and international shares
  • Residential and commercial properties
  • Overseas investments
  • Term deposits
  • Managed funds
  • Non-related businesses
  • Cash and bonds
  • Cryptocurrency

Individuals looking to create an SMSF should first speak with a financial expert with experience in working with SMSF. At Mortgage house, our professional lending specialists and financial experts are prepared to assist potential members through the creation process and offer advice on managing the fund and investment opportunities.

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