Buying a Melbourne Property with Your Self-Managed Super Fund

Buying a Melbourne Property with Your Self-Managed Super Fund , the city of Melbourne has been one of the most popular destinations for residential investment. However, it’s important to understand the rules that apply when purchasing a property with your SMSF before getting started. For example, your SMSF can only purchase a residential investment property if it’s going to be rented out to tenants – you cannot live there.

According to UNO finance broker Danny Buckingham, SMSFs can use limited recourse borrowing arrangements -LRBAs – to buy property. However, he warns that you must take care to ensure your SMSF has enough funds to meet the loan repayments. In addition, LRBAs require the creation of a separate trustee and property trust that is outside the SMSF itself. This structure protects the lender in case the SMSF fails to meet its loan repayments.

Building Wealth with Real Estate: A Guide to Buying Melbourne Property Using Your Self-Managed Super Fund

With house prices in Melbourne nearly doubling over the last decade, many people can’t afford to purchase freestanding houses. Instead, they’re turning to apartments, vill units, and townhouses that are more affordable and close to amenities in the middle ring suburbs.

It’s also important to research the market before investing in a property with your SMSF. You’ll need to consider local zoning regulations and whether the area you’re interested in is likely to experience a lot of growth in the future. Additionally, you’ll want to make sure the property is priced correctly and that it adheres to the rules governing SMSFs.