Australian Property with No SMSF Borrowing
Clients of ESUPERFUND are permitted to invest in Australian Property where the SMSF does not borrow to purchase the Property. This includes investing in Residential Property, Commercial Property, Vacant Land and Rural Land.
How to Complete the Purchase Contract
When acquiring Residential or Commercial Property with no borrowing, the Property must be purchased in the name of your SMSF. The following is noted:
The Property must be purchased in the name of the Trustees as Trustee for the SMSF.
All Directors of the Trustee Company or Individual Trustees must sign the Purchase Contract.
If your SMSF has Individual Trustees (eg Barney Spot and Buffy Spot) and the SMSF Name is Spotty Superannuation Fund then the purchaser on the Purchase Contract will be: Barney Spot and Buffy Spot as trustee for the Spotty Superannuation Fund. All Trustees of the SMSF must sign the Purchase Contract.
If your SMSF has a Company Trustee (eg Spotty Pty Ltd) and the SMSF Name is Spotty Superannuation Fund then the purchaser on the Purchase Contract will be: Spotty Pty Ltd as trustee for the Spotty Superannuation Fund. All Directors of the Company Trustee must sign the Purchase Contract.
ESUPERFUND Annual Fee
No additional fee is payable by clients who invest in Residential or Commercial Property with their SMSF with no borrowings. Our annual fee remains fixed at per annum. This is unprecedented in the marketplace.
Accessing Information by ESUPERFUND
Rental Income and Expenses will be tracked by ESUPERFUND through the Transaction Bank Account where all Income will be banked and Expenses paid in relation to the Property. Where additional information is required (such as the Property Purchase Contract) we will request this from you as part of the annual Checklist Process.
Clients who have acquired a Property in their SMSF, particularly newer properties, are able to legally claim depreciable items including carpets, furniture, fittings and so on. To maximize the depreciation tax claim it is advisable to prepare a Tax Depreciation Schedule for your SMSF relating to the Property Purchase. Please note that the Tax Depreciation Schedule must be prepared by a Quantity Surveyor. A Tax Depreciation Schedule is simply a document that lists all the Properties Depreciable Items, their effective life and the dollar value you can claim against your SMSF Income. For example for a newer property, depreciation claims may be in the thousands of dollars annually. So for example if your annual depreciation claim was $5,000 you will save $750 in tax annually (ie $5,000 x 15%). For further information on obtaining a depreciation schedule for your property click here.