SMSF, small business & buying your property

If you are a small business owner looking for a new home for your operations, chances are you will consider buying it through your SMSF.

Experts report increasing numbers of business owners buying commercial property through their SMSF, or self managed super fund.

Consider the benefits

Benefits include more money going into your superannuation fund and the lure of being able to pay rent to yourself, instead of someone else. But, of course, it’s not always the right option for everyone.

Read more: SMSF an option when buying a home for your business

Opteon Victoria Deputy Head of Commercial Glenn Boyd says your business can be the tenant in a property owned by your SMSF.

One benefit is being able to pay rent to yourself instead of someone else.

“For a small business owner, it represents an attractive investment option compared with residential properties, which have been delivering low yields,” Boyd says.

“Your asset can also be retained and leased to produce retirement income once you have left the workforce.”

Increase in SMSFs buying property

Boyd says the number of commercial property being bought by SMSFs is on the rise.

“Owning your own premises means you have ultimate control over your business and you reduce external risks,” he says.

Tips for buying property with SMSF

Mr Boyd says if you have a small businesses and are looking to invest in commercial property through your SMSF you should:

  • Obtain advice from qualified, independent professionals.
  • Do your research on the property and the area.
  • Consider how practical it will be to expand the property as your business grows.
  • Assess the condition of the property. How much will you need to spend to make it suitable for your business?
  • Consider the property’s location, surrounding infrastructure and public transport options.

Buying property through your SMSF can also be an option if you are not a small business owner.

Read more: SMSF, property & making sure it’s right for you

Opteon Victoria is part of the Opteon Property Group, Australia’s largest independent property valuation agency.