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SMSF rules

Discussion in 'Introductions' started by rjheaven, 3rd Feb, 2012.

  1. rjheaven

    rjheaven New Member

    Joined:
    3rd Feb, 2012
    Posts:
    1
    Location:
    Wagga Wagga
    A question....

    I have heard second hand a comment from a lawyer that there has been recent modifications to real estate purchase rules in SMSF's.

    I have a friend who has a SMSF with property and cash in it. She is the only trustee and beneficiary. She recently remarried and is currently living in her new spouses home. They wish to purchase another property to live in, and ideally would like the SMSF to purchase the new husbands home and rent it out to a third party (it has good rental return potential) - ie fits the investment strategy of her fund. The funds recieved by the new husband will then be used along with her savings to purchase this new property that they wish to live in.
    As I understand it, this may not be allowed under the old rules.

    Does anyone know if this is possible?

    regards, and thanks in advance

    Bob
     
  2. Terryw

    Terryw Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    653
    Location:
    Sydney
    Still not allowed as far as I know - unless it is business real property.