Stay Updated with Investax!

Sign up for our newsletter to receive the latest tax insights and financial tips directly to your inbox.

  • ✓ Expert Analysis
  • ✓ Industry News
  • ✓ Exclusive Offers
Newsletter Signup with Name
Can You Buy a Property with Your Superfund (SMSF) Jointly?

Yes, it is possible for a Self-Managed Super Fund (SMSF) to own property jointly with other investors, including related parties. This is a common practice, and there are a few ways it can be structured.

Joint Ownership with Other Investors or Related Parties

An SMSF can hold property assets jointly with other entities such as family trusts, companies, or even the SMSF members personally. Typically, this joint ownership is structured as tenants in common, which means that each party’s ownership interest in the property is distinct and can be clearly identified on the property title.

Important Considerations

  1. Title and Ownership: The property title must clearly state the ownership percentages of each party involved.
  2. Income and Expenses: Income generated from the property and any expenses incurred need to be apportioned according to the ownership percentages of each party.
  3. Tenants in Common Agreement: It is usually recommended to have a formal ‘tenants in common agreement’ in place. This agreement outlines each party’s rights and obligations, ensuring clarity and avoiding potential disputes.

Alternative Ownership Structures

Another way an SMSF can invest in property is through a Unit Trust or Company. In this scenario:

  1. Buying Shares or Units: The SMSF can purchase shares in a related company or units in a related trust.
  2. Property Acquisition: The related entity (trust or company) then uses these funds to acquire the property.
  3. Funding Flexibility: This structure allows other related parties, individuals, or relatives to also buy shares or units in these entities. This collective investment can help fund the property purchase more quickly.