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Purchasing property through SMSF - do always need a separate company

Discussion in 'Investing Strategies' started by rocomara, 27th May, 2011.

  1. rocomara

    rocomara New Member

    Joined:
    27th May, 2011
    Posts:
    1
    Location:
    Brisbane
    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
     
  2. GregR

    GregR Reid Consultants

    Joined:
    13th Jul, 2009
    Posts:
    273
    Location:
    Berwick Vic
    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
     
  3. Terryw

    Terryw Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    653
    Location:
    Sydney
    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.