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Closely held unit trust investments

Discussion in 'Superannuation, SMSF & Personal Insurance' started by dybcon, 9th Jan, 2009.

  1. dybcon

    dybcon Member

    Joined:
    9th Jan, 2009
    Posts:
    5
    Location:
    Dalby
    Hi all,

    I have a SMSF and am looking at setting up a unit trust and purchasing property through the UT as an investment. Can the UT purchase residential property such as a duplex or does it need to be commercial property such as holiday units and is there really a difference?


    Cheers

    Dybs
     
  2. AsxBroker

    AsxBroker Well-Known Member

    Joined:
    8th Sep, 2007
    Posts:
    1,448
    Location:
    Sydney, NSW
    Hi DybCon,

    Is your accountant helping you with your SMSF?

    Cheers,

    Dan
     
  3. Superman

    Superman Well-Known Member

    Joined:
    6th Nov, 2007
    Posts:
    343
    Location:
    Gold Coast, QLD
    Hi DybCon,

    I would definitely suggest you speak to an accountant who knows SMSFs or even better a SMSF Specialist (SPAA - Home).

    Last time I checked related UTs can only purchase commercial property, and holiday units are typically not considered commercial in nature (however the ATO did release a draft? ruling on this last year which may enable holiday units to be commercial in some instances).

    You may have to look at other options rather and a UT structure such as the SMSF owning it directly, a joint venture with another entity/person or a debt trust if you need to utilise borrowings.

    Hopefully this will assist you.