NPR LEGAL

Buying Property in Super

Superannuation

Buying Property in Superannuation. What you need to know.

Superannuation

If you have a Self Managed Super Fund you can either borrow funds to purchase property or purchase property outright with the money in your Fund.

Buying Property In Super

The types of properties that can be purchased are subject to restrictions and rules such as a restriction on acquisitions from related parties and in-house asset restrictions.  There is also a restriction on related parties occupying properties owned by a Super Fund that need to be considered.  However if you do purchase a property in your Fund you can potentially transfer the property to yourself as a distribution once you transition into retirement and enter the pension phase of the Fund.

There are very specific requirements and conditions that must be met if a Superannuation Fund wishes to borrow to purchase property.  A failure to satisfy these requirements can have severe consequences for the Fund both in the compliance of the fund and in relation to stamp duty and capital gains tax for the purchase of real estate.

Ownership of property by a Self Managed Superannuation Fund can provide significant advantages such as the income from the property and any capital gain from the sale of the property being subject to a reduced rate of tax or ultimately to be tax free.

NIGEL ROSS- NPR LEGAL

Suite 1, 9/19 Mitchell Drive Greenhills, NSW 2323 Australia

Monday - Friday 9am- 5pm

Ph: (02) 4933 1900

Fax: (02) 49331900

nigel@nprlegal.com.au

NPR Legal is conveniently based in Greenhills on Mitchell Drive opposite the Greenhills shopping Centre.