2nd November 2013
PURCHASING PROPERTY THROUGH YOUR SMSF One of the advantages of self managed super funds (SMSFs) is that you can invest directly in residential property through your super. But there are plenty of rules governing how SMSFs can purchase and manage investment properties and the best place to start is with your trusted financial adviser or tax accountant. You can only buy property through your SMSF if you comply with certain rules, which stipulate that the property: • Must meet the “sole purpose test” of solely providing retirement benefits to fund members
Yarraville
104 Somerville Road 9316 9000
Williamstown 1/66 Douglas Parade (Corner Stevedore Street) 9393 1600 www.jasstephens.com.au
• Must not be acquired from a related party of a member • Must not be lived in by a fund member or any fund members’ related parties • Must not be rented by a fund member or any fund members’ related parties However, your SMSF could potentially purchase your business premises, allowing you to pay rent directly to your SMSF at the market rate. SMSF property sales may have many fees and charges. These fees can add up and will reduce your super balance. You should find out all the costs before signing up including: • Upfront fees • Stamp duty • Legal fees • Ongoing property management fees • Advice fees • Bank fees Anyone who gives advice on an SMSF must have an Australian Financial Services Licence (AFSL). ASIC Connect’s Professional Registers will tell you if the company or person holds an AFSL. SMSF borrowing Borrowing or gearing your super into property must be done under very strict borrowing conditions called a “limited recourse borrowing arrangement”. A limited recourse borrowing arrangement can only be used to purchase a single asset, for example a residential or commercial property. Before committing to a geared property investment you should assess whether the investment is consistent with the investment strategy and risk profile of the fund. Craig J. Stephens Managing Director / Officer in Effective Control M 0418 547 938
As a service to our vendors, we will require names & phone numbers on entry of all inspections. Privacy Act 2000: We use personal information collected from you during open for inspections for security purposes. We may also use that information to contact you with respect to this property and others we believe may be of interest to you. Also, we may contact you in relation to other services provided by us or our associates such as insurance, mortgages and loans. By providing your information to us you agree to our use of it as described above unless you advise us differently. If the information is not provided we may not be able to provide an effective and comprehensive service to you. (Your personal information will be collected and held in accordance with provisions of the Information Privacy Act 2000). We have obtained all information in this document from sources we believe to be reliable, however, we cannot guarantee its accuracy. Prospective purchasers are advised to carry out their own investigations. We strongly recommend that you clearly register your interest with our representative at the open for inspection, so that in the event of a sale being imminent, your position is protected. We make every effort to contact all interested parties prior to a property being sold.
MEET THE TEAM
MAREE CECCHIN
ANNA GRECH
ASTRID JANE
ALAN STEPHENS
REECE GOSSTRAY
Sales Trust Administrator
Senior Sales Consultant
Sales Consultant
Chairman
Phone 9316 9025
Mobile 0438 446 051
Mobile 0402 211 660
Mobile 0411 242 638
Project Sales Manager Banbury Village
Email salessec@jasstephens.com.au
Email agrech@jasstephens.com.au
Email ajane@jasstephens.com.au
Email astephens@jasstephens.com.au
MARK HUTCHESON
NICOLE GRECH
LACHLAN McCRAW
SUE STEVENS
MAX WALLER
Sales Consultant
Marketing Manager
Property & Finance Consultant
Mobile 0448 820 445
Mobile 0423 590 508
Business Development Manager (Property Management) - City of Maribyrnong
Director Provincial Home Loans
Email mhutcheson@jasstephens.com.au
Email ngrech@jasstephens.com.au
Mobile 0400 335 498
Email suestevens@provincialhomeloans.com.au
Email lmccraw@jasstephens.com.au
Mobile 0432 705 815
Mobile 0418 378 276 Email rgosstray@jasstephens.com.au
Mobile 0438 430 436 Email maxwaller@provincialhomeloans.com.au