DIY Super and "Related Parties"

I've searched but can't get a clear picture of exactly what a super fund may or may not invest in using this example.

Say, the super wishes to purchase, as tenants in common, part of a house. There is no mortgage on the house and the other owner paid the rest. So far OK, but what if the other owner was the mother of one of the super funds beneficiaries, is that allowed or are we investing in the house of a "related party" ? The mother herself is not a beneficiary.

 

Mr Darcy, as long as the terms of the SMSF's Investment Strategy allow that type of investment, and as long as the fund does not borrow money, I am fairly sure what you have suggested is ok. NickM ?

Cheers
Carl

 

The investment strategory should be OK, as this is a long term growth investment which is all I want for super.

I read some bits that say when otherwise "in-house" assets are purchased as tenants-in-common it's ok (so long as no leased?), but this asset will also be lived in by a relative, and I'm not sure that can be allowed with sole purpose tests or the like.

Nick ?

 

Definitely not an option to own residential property in a fund (either 100% or as TIC) and lease that property to a related party.