##{"id":60573,"date":"2012-09-14T10:45:30","date_gmt":"2012-09-14T00:45:30","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2012\/09\/14\/switzer-super-report-the-rules-of-smsf-property-investing\/"},"modified":"2012-09-14T10:45:30","modified_gmt":"2012-09-14T00:45:30","slug":"switzer-super-report-the-rules-of-smsf-property-investing","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2012\/09\/14\/switzer-super-report-the-rules-of-smsf-property-investing\/","title":{"rendered":"Switzer Super Report: The Rules Of SMSF Property Investing"},"content":{"rendered":"

\n\tBy Chris Gray, Switzer Super Report<\/a><\/p>\n

\n\tProperty investing within your self-managed super fund is a highly regulated affair and playing by the rules is essential if you are to avoid the perils and pitfalls of the property game. Follow these guidelines though, and you’ll discover that property investing in your SMSF<\/span> can yield financial rewards.<\/em><\/p>\n

\n\tCan I live in the property I buy with my SMSF<\/span>?<\/strong><\/p>\n

\n\tWhen it comes to purchasing residential property inside your SMSF<\/span>, one of the tightest rulings by the ATO<\/span> is that the investment must be kept at “arms length”, restricting you from directly benefiting from the asset until retirement. (This is the same ruling that forces us to keep our artwork in storage until we retire, lest we gain pleasure from its aesthetics<\/span>).<\/p>\n

\n\tThis means you can’t use your SMSF<\/span> to purchase the home you live in, nor can you use it to purchase an investment for your family or lease it to anyone other than an unrelated third party.<\/p>\n

\n\tUnfortunately, investing in a holiday home for yourself is also out, even if you only plan on staying there for one evening of the year.<\/p>\n

\n\tWhat about commercial property? Can I invest my super in a business premises?<\/strong><\/p>\n

\n\tYes you can. In fact, the ATO<\/span> treats commercial property quite differently to residential investments, allowing you to indirectly benefit from the use of the property via your own business. For example, your super fund could potentially purchase the premises your business currently leases, allowing you to pay rent directly to your SMSF<\/span>.<\/p>\n

\n\tMany business owners have seen real benefit in acquiring a commercial property under this scheme as it essentially allows them to become their own long-term, blue-chip tenants.<\/p>\n

\n\tWhat if I don’t have enough super to invest in property safely?<\/strong><\/p>\n

\n\tIn my last article I talked about the ability to lend funds to your SMSF<\/span> from an outside source, such as personal equity, in much the same way a bank lends money to its clients. The SMSF<\/span> would then repay the loan back to you over an agreed time and at an agreed rate.<\/p>\n

\n\tAlternatively, because an SMSF<\/span> allows up to four members to act as trustees to the fund, you can effectively pool your assets with other parties to raise the monies required.<\/p>\n