SMSFs and property investment

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Running Time: 7:33

Date: 01/08/2014

Investing in property via a self-managed super fund can be a great alternative to shares, but there are several things to consider.

The starting point according to Michael Jones of Cummings Flavel McCormack, is to work out how to get enough money into the SMSF to start a property investment. First, we need to be aware of the contribution limit changes that came in to effect from 1 July 2014. Concessional contributions are $30,000 (or $35,000 for those over 49 years of age). Non-concessional contributions have a new limit of $180,000 per year - and you can lump sum three years to a total of $540,000 or over $1 million dollars for a husband and wife.

Other than cash, SMSFs allow contributions of listed shares, business real property or rolled funds from industry super funds. You can also borrow in a SMSF or use unit trusts, and Michael discusses the restrictions around what you can and can't do.