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Offline allanuber


  • Joined: Aug 2007

  • Location: Sydney
  • Name: Al
Can you buy a house with your smsf then rent it to yourself? Would this have any benefit. Just thinking out loud.

Guys have covered that above. Arms length for residential (so not yourself, your partner or your family), but for commercial property you can rent it, but at fair commercial rates.

Thoooough... I do know of a few ambitious ~30 year old investors with a sneaky loft in their commercial / office properties which they live in.
C'mon, do it!



Offline anotherforumuser

  • AE's voice of reason
  • Choose to take risks or settle for ordinary.

  • Joined: Sep 2010

  • Drives: A red car.
  • Location: Downunder
Guys have covered that above. Arms length for residential (so not yourself, your partner or your family), but for commercial property you can rent it, but at fair commercial rates.

Thoooough... I do know of a few ambitious ~30 year old investors with a sneaky loft in their commercial / office properties which they live in.

I have an 80 yr old step dad.  ... not related at all by law. ;)

He'd make a great tenant.



Offline looney


  • Joined: Mar 2007

  • Drives: VW Beetle
Can you buy a house with your smsf then rent it to yourself? Would this have any benefit. Just thinking out loud.

as above, its a no go for residential.  but you can do it for commercial premises and rent it back to yourself.



Offline 360c

  • 300kph+ club
  • Drug Dealer

  • Joined: Apr 2006

  • Drives: Purple People Eater
You can now borrow for property or share investment. The repayment interest is a bit higher though.

Generally the interest rates can be pretty high; but they can be as cheap as housing loans depending on individual circumstances etc



Offline adam01


  • Joined: Nov 2009

  • Location:
  • Drives:
No, has to be at arms length.

That would rule out david jansen ne The Fugitive :)



Offline TomE


  • Joined: Aug 2010

  • Location: ADL
The rules changed about 4 years ago to allow SMSF's to buy property using limited recourse loans. In other words the lender only has recourse on the property in the event of default and no other assets of the fund. Hence stringent lending requirements and low LVR's.

The loan is in the SMSF name.

The property is actually bought in a separate property trust / bare trust with a security agreement in place for ownership to transfer to SMSF on loan repayment.

Guarantees are taken from the Property Trust and the SMSF Members

The loan is serviced by the rental income and the Members contributions (self or employer contributions).

LVRs are the same as standard home loans 80% / business loans 65% as long as the SMSF Trustee in a company.

Interest Rates are 1% higher than your standard home loan / business loan.
"There's too many self-Indulgent wieners in this city with too much bloody money! Now, if I was driving a 1967 275 GTB four-cam... "



Offline app


  • Joined: Sep 2008

  • Location: Adelaide
I spend pretty much all day everyday reading financial stuff and working on various investments.
I pay staff to do the actual work :)

If you don't mind my asking, what sources do you read for financial related material?

Problem for me is there is so much out there that time doesn't permit me to read enough.  There isn't anything that's really given me good information for the time spent reading.

I used to read Financial Spectator, but it's now a paid subscription service and I'm too stingy to pay to use it :P



Offline shack

  • 300kph+ club
  • I am not here .....

  • Joined: Dec 2009

  • Location:
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Guys have covered that above. Arms length for residential (so not yourself, your partner or your family), but for commercial property you can rent it, but at fair commercial rates.


So can you buy a larger commercial property with a few mates in the SMSF i.e. say 3 parties all un-related use their SMSF to buy the property?



Offline amgsl55

  • Tooth hurty

  • Joined: Feb 2011

  • Location: Adelaide
So can you buy a larger commercial property with a few mates in the SMSF i.e. say 3 parties all un-related use their SMSF to buy the property?

yes, and all 3 parties can be related if you like

you can even do a JV between your SMSF and yourself, or any trust or company you control



Offline allanuber


  • Joined: Aug 2007

  • Location: Sydney
  • Name: Al
yes, and all 3 parties can be related if you like

you can even do a JV between your SMSF and yourself, or any trust or company you control

^^^ That's where it gets interesting!   :)
C'mon, do it!



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