SMSF investment

The super laws demand that trustees formulate and implement an investment strategy, and consider any super fund investment in light of your fund's investment strategy.

You must also ensure that your super fund doesn't break any special super investment rules. Year in year out the three most popular investment classes for SMSF trustees are: direct shares, cash (and term deposits) and direct property.

Self-managed super funds also invest in listed and unlisted trusts, other managed investment schemes, debt securities, derivatives and instalment warrants, collectibles, overseas investments and other investments.

Set out below are all SuperGuide articles explaining SMSF investment.

Doubling your wealth is a super compound: Rule of 72

The level of investment return you can expect on your super account, or other type of investment, has been a hot topic recently. Volatile share markets and record low interest rates have prompted super funds and fund managers to temper the expectations of investors in relation to long-term returns … [Read more...]

Government’s green light on SMSF borrowing, with conditions

On 20 October 2015, the Liberal government confirmed that SMSF borrowing, through the use of limited recourse borrowing arrangements, continues to remain a legitimate financing option for SMSFs. Note that in April 2016 however, the ATO released guidelines flagging the expected demise of LRBAs … [Read more...]

SMSF investment: Borrowing to invest can be the means, not the end

As a property and share investor for nearly 30 years, I believe the use of borrowing can be a legitimate means to purchase assets, but gearing is not an investment in itself: it is simply a means to invest with associated costs and extra risk.Over the years, I have spoken to thousands of … [Read more...]

SMSF borrowing: Investing in property (what’s OK and NOT OK)

If you run a self-managed superannuation fund, you can invest in all types of real property, including residential property, commercial property, industrial property and even a farm (under certain circumstances).Before September 2007, the capacity to use borrowed money to purchase an SMSF asset, … [Read more...]

SMSF borrowing: Fix related party LRBAs by 30 June 2016, or risk 47% tax

Note: This article deals specifically with SMSF limited recourse borrowing arrangements (LRBAs) financed by related parties, rather than financial organisations. If you’re seeking general information on SMSF borrowing and LRBAs, see SuperGuide articles SMSF investment: Borrowing to invest is a … [Read more...]

Revisited: Is property a good investment for your SMSF?

In the past few months, we have received a higher-than-normal number of emails seeking information about investing in property via an SMSF. In response to this upturn in interest, I have revisited the question, is property a good investment for your SMSF?Previously, I have written that I have … [Read more...]

SMSF investment: Where can I find information about SMSF borrowing?

Q: I’ve just finished reading DIY Super For Dummies and found it really helpful. What interested me was the borrowing options for SMSFs. We already own a property in our fund and we are looking at using borrowings for financing our next fund purchase. In your book you mention a joint venture to … [Read more...]

SMSFs and joint property purchases need expert advice

Q: A SMSF purchases a property in joint names – between the two trustees as joint tenants and the SMSF (tenants in common). The conveyancing document says the title statements show the ownership as 60% SMSF and the Trustees 40 % . However the trustees have used 79% of the SMSF funds to purchase the … [Read more...]

SMSF investment: Can my DIY super fund invest in direct property?

Q: I am interested in setting up a self-managed fund. I would like to know more about the rules for purchasing property in a super fund, and whether it is possible to use borrowings to do so.A: A self-managed (DIY) super fund can invest in all types of property, including residential, … [Read more...]

SMSF basics: Can my DIY super fund buy my residential investment property?

Q: I own a residential unit as an investment property as a personal investment. I would like to keep this unit as long as possible. The unit is a safe income stream and a safe haven against market uncertainty. However, if I have to sell it later, I won’t be able to put the money into my SMSF because … [Read more...]