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Antony Joseph

Nov 07, 2021

Residential property purchase by SMSF

in SMSF Technical Forum

Husband and wife got a unit trust (7:3 ratio) with an old investment property in it with a bank loan . They are now demolishing the old investment property held by the unit trust and constructing 4 brand new residential townhouse with bank finance. The question is if the husband and wife form an SMSF, can SMSF purchase two townhouses from the unit trust outright once the construction is over with or without LRBA finance. SMSF is not investing in the unit trust or the construction activity but only purchasing the townhouses once the construction is completed by the unit trust.

Is there any difference if the townhouse is a rooming service house ( commercial residential)

Thanks in advance

2 answers0 replies

Comments (2)

Antony Joseph

Nov 08, 2021

Thank you very much