Are you a business owner in search of a new home for your day-to-day operations? Weighing your investment strategy against market trends in real estate will ensure you avoid groping on investment risks.
But have you considered buying your next office’s new home through SMSFs?
What are SMSFs?
The Superannuation Industry Act (1993) outlines SMSFs (Self-Managed Superannuation Funds) as trust structures in Australia where members — a maximum of four — pool their financial remuneration to provide financial benefits in retirement. Here, all members are trustees of this fund, giving them a higher level of control in tailoring the fund to suit their individual needs, and those of their respective beneficiaries, including buying commercial property.
The SMSF Trustee Structure
The basic trustee structure options for SMSF are corporate trustee and individual trustee. Under corporate SMSF trusteeship, the members act as directors while they select one compact to act as their trustee. The advantage of such a structure is that it simplifies asset documentation, which enhances administrative efficiencies and member flexibility. With the individual trustee structure, the members appoint some of their members to act as their trustees.
Benefits of SMSF in Buying Property
Buying a property using SMSF is a more attractive investment option for business owners than the low-yielding investment in residential properties. As buying commercial properties gives you the ultimate control in property management, besides retaining the assets you accrue, once you leave the workforce you can lease these properties to provide you with more retirement income.
When considering buying your next office — commercial, industrial or agribusiness property — on SMSFs, consult a licenced realtor to help you weigh your property investment decisions against the current trends in international property trade and other emerging issues in both the global and local housing and construction industries.