06 Nov 2021

Can You Live in Your SMSF Property Once Retired?

So, you decided to purchase a property using your self-managed super fund with the hopes of turning this current investment property into your future retirement home. While this is a nice idea, the process is more complicated than you think. Even if you are retired, you may not be able to live in the home if it is still owned by the SMSF or any of the trustees. Therefore, in order to live in the home after you are retired, you must first transfer the title from the super fund to your name. This process can be complicated, and, depending on the type of property you purchased, may be impossible. 

If you are planning to live in the property after you retire, there are some better options:

Keep the SMSF Property as an Investment

By keeping the property purchased by your SMSF as an investment, you can increase your retirement fund. In addition, the income generated by the property is taxed at a lower rate than traditional investment properties. In addition, when you sell the property, the capital gains received are also taxed at a lower rate. 

Use Your Super as a Deposit Once You Retire

Instead of moving into your SMSF property when you retire, you can keep it as a rental property and withdraw some of your super to put towards a deposit on a new home. However, in order to do so, you must first withdraw the money from your super account and place it in your personal bank account. 

We all have goals for the future. At Mortgage House, we offer up creative solutions to make those dreams happen. If you want to buy a property with your SMSF with the intent to move into the home after you retire, consult with our experts first. We can help you determine if it’s possible via your fund’s guidelines and regulations. If it’s not, we can help find a creative solution. 

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