FOR young first home buyers struggling to scrape together enough for a deposit, seeing tens of thousands of dollars locked away in their superannuation can be painful.
But the holy grail of tapping into that cash to get a foot on the property ladder may be one step closer, following a new ruling by the Australian Taxation Office that paves the way for self-managed super fund trustees and members to invest in family property.
Under the current rules, a person’s self-managed super fund (SMSF) can’t own a property and rent it out either to themselves or someone related to them. The person also can’t buy a property off themselves using their SMSF.
According to advice provided by the ATO to DomaCom, a fractional property investment firm which allows people to buy units in a property in the same way as shares, SMSFs would not be in breach of the rules as long as the fund owned less than 50 per cent of the property.
“Basically what it means is that for the first time, a parent can use their super fund to invest in a property with their son or daughter, and the son or daughter can then rent it,” DomaCom chief executive Arthur Naoumidis said Read More Here