With an SMSF having the ability to acquire property with a non-recourse borrowing arrangement, direct property investments using SMSF give rise to a number of opportunities.
Direct property includes Commercial Property, Industrial Property, Primary Production Land, Residential Property or Investment Property. It is important to understabd that the purchase contract and ownership needs to suit the SMSF so that there is no mortgage on the property unless it is established with a property warrant Trust.
It is possible to acquire property in an SMSF over a period time with a Terms Contract or purchasing the property in a series of shares over time. It all depends on what is most suitable to the SMSF.
At Powers we understand the different purchase structures and work with you to ensure that any property investment by your SMSF will be for the financial benefit of the funds members.