Purchasing property through SMSF - do always need a separate company

Hi,

I am thinking of purchasing a commercial or residential property using my SMSF without a loan, i.e. outright purchase. Do I still need to set up a company or can I go ahead and purchase in the name of my SMSF (with individual trustees).

Thanks

 

My understanding is that if you are not borrowing money to fund the purchase, you can simply purchase in the name of the SMSF like any other asset understanding the sole purpose test etc.
The issue of a corporate trustee compared to individual trustees is more to do with flexibility, it being far easier to change a director of a corporate trustee than to have to change/add/replace/delete an individual trustee.
Greg

 

I agree with Greg. But would go further and say you shouldn't be acting as individual trustees, put in a company as trustee now before you buy the property.