Can I buy a property through my SMSF for my child to live in?

Answer

Your fund must be maintained for the sole purpose of providing retirement benefits to fund members, or a benefit to their dependants if a member dies before retirement. The investment return from the property through both rental income and capital growth must be the sole focus for making the investment. This means your children can’t live in the premises.

Even if your child pays a market rate of rent to live in the property, the superannuation rules do not permit a fund asset to be leased to a related party of the fund if the market value of that asset exceeds 5% of the fund’s value.

We recommend that you speak with a financial adviser to help you decide if buying property through your super fund is right for you.

Important information

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It’s important to consider your particular circumstances and read the relevant Product Disclosure Statement or Terms and Conditions before deciding what’s right for you. This information hasn’t taken your circumstances into account.

This information is provided by AMP Life Limited. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you. All information on this website is subject to change without notice.