Wealth Creation | Property Investing

Structuring Buying and Owning Property| Superannuation, Companies, Trusts, Property Syndicates, Joint Ventures, Tenants In Common, Joint Tenancies and more

BiG Tips: How you buy a property, whether in your own name, in a trust, company or other can make a big difference to your borrowing capacity, tax liability and asset protection in case of bankruptcy or relationship break down.
These experts might help:

Margaret Lomas of Destiny has brilliant free resources – VidcastsPodcasts and more covering many of these issues.

  • Companies
  • Joint ventures (JVs) (see below Tenants in Common)
  • Property syndicates (see below Tenants in Common)
  • Property trusts/Listed property
    [BiG, see too The what and why of investing in property trusts, Australian Investors Association]
  • Self-Managed Superannuation Funds (SMSF)

SMSFs and Property MoneySmart (ASIC), They say:Self-managed super fund property rules.
You can only buy property through your SMSF if you comply with the rules. The property must:

  • meet the ‘sole purpose test’ of solely providing retirement benefits to fund members
  • not be acquired from a related party of a member
  • not be lived in by a fund member or any fund members’ related parties
  • not be rented by a fund member or any fund members’ related parties

If your SMSF purchases a commercial premises, it can be leased to a fund member for their business. However, it must be leased at the market rate and follow specific rules.  See the Australian Taxation Office website for more on SMSF rules.”

SMSFs are being targeted by sophisticated fraudsters who go to great lengths to deceive, including sending information packs to victims and setting up fake websites to appear legit. In a speech at the Self-Managed Superannuation Professionals’ Association of Australia last year, Australian Crime Commission executive director David Lacey said up to 10 victims a week in Australia were losing savings from $35,000 to $4 million.

Buying property through self-managed super funds has its pitfalls, Kate Jones

Buying Property With A Self-Managed Super Fund (SMSF) by Real Estate Investar

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