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Can I buy an investment property in my Self Managed Super Fund ?

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From our business partner, Gerhardy Whitelum Taxation & Business Advisors, 24 Gawler Street, Nuriootpa.

Self Managed Super Funds (SMSFs) are able to hold residential property as an investment BUT the following rules must be followed:

  • You or your relatives may not live in the property
  • You or your relatives may not rent the property
  • You cannot put an existing residential investment property you have into an SMSF – either by way of the fund purchasing it at market value, or you contributing it

If you buy a property through an SMSF, the fund will pay 15% tax on net rental income from the property.

If the property is held for longer than 12 months, the fund will receive a one third discount on any capital gain it makes on sale, bringing any capital gains tax liability down to 10%.

Once the SMSF members start receiving a pension at retirement, any rental income or capital gains arising in the fund will be tax free

It is always best to seek advice from a tax professional before purchasing a residential property in an SMSF.

If you require clarification or advice on any of this information, please contact us:
P: 08 8562 4332
admin@gerhardywhitelum.com.au
24 Gawler Street, Nuriootpa SA 5355

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