Become your own Landlord and buy a Commercial Property with Self Managed Super

I read a recent article in the Melbourne Age which highlighted how big a trend property and Self Managed Super really is. Here's a snippet from the article:

SELF-MANAGED super funds are becoming important players in the CBD strata office market.

The trend was shown by a recent sale of a 120-square-metre office floor within 313 Little Collins Street. It sold for $565,000, reflecting a rate of $4700 per square metre.

The vacant, fully self-contained whole third floor was bought by a local owner occupier, who acquired the property through his self-managed super fund. CBRE city sales agents Tom Tuxworth and Ed Wright negotiated the sale on behalf of Fenton Design Group Architects, which had occupied the space since 2006 but recently relocated.

Mr Wright said Melbourne's strata office market continued to mature as both owner-occupiers and investors learnt more of the benefits of buying commercial real estate in their Self Managed Super Funds.

 

Whilst thousands of Australians are discovering some of the secrets that big super funds and financial advisers don't want us to know; that our superannuation can be used as a deposit on an investment property using Self Managed Super, it seems that business owners are also discovering the benefits of SMSF and using their fund to purchase commercial properties from which they can operate their business.

Commercial property is unique, in that your super fund can purchase the property from your land lord, if he's willing to sell, purchase a property in the open market, or from yourself if you already own and occupy your business premises.  As long as the premises is leased from your super fund at commercial rates, your fine.

Whilst this strategy is not new, being able to borrow within your SMSF to complete the purchase has only been around for a few years, opening up significant opportunity to get of the business rental roundabout and into a commercial property that serves their retirement funding needs, and business premises needs at the same time. 

Are you thinking about establishing a SMSF and need some more information or interested in transferring your SMSF to Exelsuper? Please feel free to Contact Us if you have any questions.