Using Super to buy Unit Trust to buy properties?

[Mich]

Can this be done?

1. Setup a Unit Trust
2. Get family members to buy the Units using their super (SMSF?)
3. Use the Unit Trust to buy property

The idea is that each of the individual family members don't have a great deal Super. Certainly not enough for a deposit on a house. But collectively, the super is enough to buy a property, maybe even CF+.

 

[Aaron_C]

isn't that what a smsf is by definition?

 

[Property Hoarde]

It can be done but some points.

1. If unit holders are related, the trust needs to be an ungeared unit trust (ie no borrowing) which would mean CF+
2. If residential property, a related party can not rent it.

Basicly a related unit trust needs to comply with the same rules as if the SMSF purchased the property directly.