What happens to my SMSF property when I retire?

When a superannuation fund is wound up, generally the investments are cashed out and the funds are given to the retiree.

The exception is in-specie transfers, when instead of being sold, the title of the SMSF property (or other assets) is transferred to the SMSF recipient on retirement.

There may be benefits to in-specie transfers such as not having to pay stamp duty on the transfer. The recipient avoids the selling and buying costs usually associated with property.

The most important thing to remember though, is that the Australian Taxation Office (ATO) must be convinced that any benefits you receive from the transfer of the SMSF property pass the sole purpose test.

So, can I move into a property purchased by my SMSF at retirement?

The short answer is yes, but only when you are legally allowed to access your superannuation and have transferred the property (in-specie transfer) or sold it from your SMSF to yourself. You do need to carefully consider the tax or stamp duty and Centrelink implications of such a transfer or sale.

When you retire and start receiving an income stream or pension from your SMSF, you can sell the home in which you currently live and deposit the money into your SMSF account (subject to contribution caps or downsize contribution rules). Once you have done this, you could transfer the title of the SMSF investment property into your own name.

So, essentially, you’re purchasing the investment property from your SMSF.

Property is considered by many Australian’s as a sound and safe investment option, however it’s important to consider all the legal requirements that go along with it and the investment risk.

SMSF regulations are complicated and precise, and legislative changes mean fund members need to be constantly across the changing space. Failure to comply can result in hefty fines and significant financial costs.

ARE YOUR READY TO INVEST? 

If you have decided you want to purchase a property within you SMSF or would like to refinance an existing loan, please click the 'Start Here' button below, this will take you to our online Fact-find platform in which you can fill out your details.

We will connect with you within 1 business day to confirm and discuss the next steps.