Hi everyone
I am looking for some guidance with respect to purchasing a property through my SMSF.
About a 1 1/2 years ago my wife and I set-up a SMSF with ourselves as the personal trustees for the SMSF.
Up until recently we had the money from our SMSF invested in the stock market. However we have now sold out and have had the money deposited back into the SMSFs bank account.
We are now looking to purchase a property through our SMSF and will look to borrow some of the monies required to fund the purchase from the bank.
It is my understanding that in order for the SMSF to obtain monies from a lender.
We are required to set up an incorporated company to be the Property Trustee (ie. this company should not be a trading company).
I am currently in process of having this arranged and was wondering if someone could confirm the structure I will be nominating is correct (ie. creating the new company):
Company Structure: PTY Ltd
State of incorporation: VIC
Common Seal: No Seal
I will be nominated and acting in the following capacity for the company: Director, Secretary, Chairman, Public Officer & Member
My wife will be nominated as a Member of the company
Class of shares : Ordinary
Number of shares: 2
Total value of shares: $2.00
* These shares will be split between myself and my wife (ie. 1 share for me and 1 for her)
This is probably rather an obvious question but how is a company defined to be non-trading as opposed to a trading company?
I assume that this is detailed within the registration of the company. Therefore I am not sure if the way I am going to nominate and structure the new company (ie. based on the detail above) will fulfil that requirement?
I also understand that there is also a requirement for a Property Trust deed to be created but this is not required until the contracts are exchanged on the property (ie. given that I am looking to purchase in Victoria)
So if I was to purchase a property then the “new company” is required to be incorporated first and be noted as the purchaser on the contract.
Example:
SMSF name: ABC Superfund
Personal Trustees : Paul & Irene Smith
New company setup and incorporated by ASIC (ie. Property Trustee)
Name: XYZ Property Holding PTY LTD
The name on the contract for the purchase would be XYZ Property Holding PTY LTD with the 10% deposit required for the purchase to be taken from the ABC Superfund bank account.
If anyone could confirm that what I have articulated in terms of the above is correct I would really appreciate it.
Cheers
I am looking for some guidance with respect to purchasing a property through my SMSF.
About a 1 1/2 years ago my wife and I set-up a SMSF with ourselves as the personal trustees for the SMSF.
Up until recently we had the money from our SMSF invested in the stock market. However we have now sold out and have had the money deposited back into the SMSFs bank account.
We are now looking to purchase a property through our SMSF and will look to borrow some of the monies required to fund the purchase from the bank.
It is my understanding that in order for the SMSF to obtain monies from a lender.
We are required to set up an incorporated company to be the Property Trustee (ie. this company should not be a trading company).
I am currently in process of having this arranged and was wondering if someone could confirm the structure I will be nominating is correct (ie. creating the new company):
Company Structure: PTY Ltd
State of incorporation: VIC
Common Seal: No Seal
I will be nominated and acting in the following capacity for the company: Director, Secretary, Chairman, Public Officer & Member
My wife will be nominated as a Member of the company
Class of shares : Ordinary
Number of shares: 2
Total value of shares: $2.00
* These shares will be split between myself and my wife (ie. 1 share for me and 1 for her)
This is probably rather an obvious question but how is a company defined to be non-trading as opposed to a trading company?
I assume that this is detailed within the registration of the company. Therefore I am not sure if the way I am going to nominate and structure the new company (ie. based on the detail above) will fulfil that requirement?
I also understand that there is also a requirement for a Property Trust deed to be created but this is not required until the contracts are exchanged on the property (ie. given that I am looking to purchase in Victoria)
So if I was to purchase a property then the “new company” is required to be incorporated first and be noted as the purchaser on the contract.
Example:
SMSF name: ABC Superfund
Personal Trustees : Paul & Irene Smith
New company setup and incorporated by ASIC (ie. Property Trustee)
Name: XYZ Property Holding PTY LTD
The name on the contract for the purchase would be XYZ Property Holding PTY LTD with the 10% deposit required for the purchase to be taken from the ABC Superfund bank account.
If anyone could confirm that what I have articulated in terms of the above is correct I would really appreciate it.
Cheers