HOW TO BUY YOUR BUSINESS PREMISE THROUGH YOUR SMSF

By The Base Team on February 20th, 2017 | Commercial Investments, Property, Self Managed Super Fund, SMSF

How To Use Your SMSF To By Your Business Property
A common investment strategy for small business owners is to use their Self-Managed Super Fund (SMSF) to buy their business premise, explains Cameron McDonald from Mortgage Choice in the North Western Suburbs.

Their SMSF then leases the property back to their business.

BY DOING THIS, SMALL BUSINESS OWNERS: Can hold their important business asset (their work premise) in a tax-effective structure; and Use capital from their SMSF to buy the property – rather than tie up important business capital.

When a business premise is leased by a SMSF to a business, it is important that the transaction occurs on an arm’s length basis (i.e. on a commercial basis).

There should be a formal lease agreement drawn up that is independently verified by a reputable professional, such as a local real estate agent. The formal lease is a binding document, which means the trustees of the SMSF must enforce the terms of the lease. Rent has to be paid on time lest the tenant incur a penalty.

The laws surrounding the types of business properties that can be purchased through an SMSF are complex. To understand the intricate ins and outs of buying a business dwelling through your SMSF, it is important to visit the Australian Taxation Office website and speak to your mortgage broker and financial adviser.

You can download a PDF copy of this article here: TBY - Info Sheets - #2 HOW TO BUY YOUR BUSINESS PREMISE THROUGH YOUR SMSF

About Cameron McDonald Cameron McDonald is a Mortgage Choice franchisee in Melbourne, helping thousands of Australians with their property and finance goals over the last 13 years. He specialises in residential and commercial lending. Contact Cameron at: cameron.mcdonald@mortgagechoice.com.au or by calling him on 0409 559 697.

Disclaimer: The Base Yarraville Info Sheets are created in conjunction with Mortgage Choice. The investment decision of all interested parties should be based on advice from a qualified Financial Planner or similar professional and on their own research before making any investment decision. This document contains information compiled by Mortgage Choice to assist you in conducting your due diligence. Please ensure you corroborate all information contained within this document. The Base Yarraville will not accept responsibility for inaccurate information provided from external sources or third parties. HOW TO BUY YOUR BUSINESS PREMISE THROUGH YOUR SMSF

HOW TO SET UP A SMSF

By The Base Team on February 5th, 2017 | Commercial Investments, Property, Self Managed Super Fund, SMSF

The Base Yarravillle is now selling warehouses.
Australians are increasingly choosing to take control of their own superannuation through self-managed super funds (SMSFs).

If you have been thinking about setting up your own self-managed super fund, but don’t know what is involved, here are the six steps by Cameron McDonald, Mortgage Choice in the North Western Suburbs.

The six key steps you need to take to set-up your self-managed super fund are:

1. Create a team of SMSF advisers

The first thing you should do is assemble a team of experts to assist you with running your SMSF. You should have a financial planner, a solicitor, an accountant, and an investment strategist. Make sure you spend time choosing the right people, so ask tough questions and check their fee structure and accreditation.

2. Appoint trustees

An SMSF can have up to four trustees. Trustees can be family members or friends over the age of 18. No member can be an employee of another member and no trustee is allowed to be paid for carrying out their trustee duties.

3. Create a trust deed

Once you have your trustees, you will need to create a trust deed. This details the existence of the trust and establishes the rules of operation. This must meet all legal requirements and be dated and signed by all trustees. It is recommended that you hire a legal professional to guide you through this process.

4. Register your SMSF with the ATO

Once you have set up your SMSF, you will need to register it with the Australian Taxation Office so it can be recognised as a regulated fund. This requires an Australian Business Number and a Tax File Number.

5. Set up a dedicated bank account for your fund

To keep everything organised and make record-keeping easier, it is a good idea to open a separate bank account dedicated to your SMSF. You can use this account to receive new contributions and roll over existing super funds, pay fund-related bills, and keep track of benefits.

6. Roll over your super

If you have super in more than one fund, you should consolidate it into your new fund as it will make it easier for you to manage your super. Your local financial adviser can help you consolidate your existing superannuation accounts into your SMSF.

About Cameron McDonald

Cameron McDonald is a Mortgage Choice franchisee in Melbourne. Over the last 13 years, Cameron has helped thousands of Australians with their property and finance goals. He specialises in residential and commercial lending.

Contact Cameron at: cameron.mcdonald@mortgagechoice.com.au or by calling him on 0409 559 697

You can download a PDF copy of this article here: TBY - Info Sheets - #1 HOW TO SET UP AN SMSF

Disclaimer: The Base Yarraville Info Sheets are created in conjunction with Mortgage Choice. The investment decision of all interested parties should be based on advice from a qualified Financial Planner or similar professional and on their own research before making any investment decision. This document contains information compiled by Mortgage Choice to assist you in conducting your due diligence. Please ensure you corroborate all information contained within this document. The Base Yarraville will not accept responsibility for inaccurate information provided from external sources or third parties.