Contracts must be signed by Monday 10 August

Buying residential property in your SMSF ends this week

From 10 August, super funds can no longer borrow against residential property. A property bought for your retirement is the last thing to rush, so this is not a sales push: it is simply the last week in which the choice is still yours to make.

What the deadline actually means

In by the 10th: the fund and the borrowing structure established, and a signed contract of sale.
Not needed by the 10th: settlement, formal finance approval, tenants, or every last document — those all run their normal course afterwards.
Not affected: commercial property, shares and every other SMSF investment — and improving a property with the fund's own money, without borrowing.

Setting the structure up is close to $4,000: a company to act as trustee of the fund, the SMSF deed, the bare trust deed, and a second company to act as trustee of the bare trust. At least $1,500 of that is ASIC registration fees paid straight through before the accountant earns a cent. After that come the ongoing costs of running a fund — annual company review fees of a few hundred dollars, plus the fund's tax return and audit each year. Which is exactly why this does not suit everyone.

Put your hand up

Thirty seconds. Kieran Sheehan — the accountant who sets these up faster than anyone we have ever worked with — and Rob will take it from there.

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Rob or Kieran will call you shortly. If it is urgent, call Rob directly on 0466 617 142.