Despite the increasing popularity of SMSF geared property investment in Australia, this process is technical and can be confusing. SMSFs are subject to a number of legal restrictions when investing in property and this form of investment needs to be monitored closely.
The penalties for contravention of SMSF regulations may include large fines, declaration of the fund as non-compliant and thus revoking its concessional tax status, or even disqualification of the trustee preventing them from controlling a SMSF in the future.
What do you need to do?
Gearing your SMSF for property investment should not be taken lightly and it is recommended that you get legal advice in order to facilitate this procedure. Your lawyer will be able to help mitigate the transactional risks and ensure that you take advantage of the range of commercial benefits available.
We have the in house capability to provide a full end to end service in regards to your SMSF. We can assist you with matters including:
- Establishing SMSFs;
- Rolling funds into the SMSF for geared investments;
- Dealing with the banks to obtain finance through your SMSF;
- Amending trust deeds to ensure ongoing regulatory compliance;
- Setting up a company to act as trustee of the SMSF;
- Preparing residential and commercial property contracts for the SMSF; and
- Negotiating and settling property transactions for the SMSF.
Please note that it is not within our scope to provide any financial advice and you must seek advice from an appropriately qualified and licensed financial adviser in relation to your SMSF.
To arrange an obligation free discussion about the legal process of investing in property with your SMSF please contact Robert Lalor at firstname.lastname@example.org, or please phone our office on (07) 3223 6100.