Buying A Rental Property and Mortgage

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Buying A Rental Property and Mortgage

There are some restrictions and guidelines that you need to follow as a trustee or director of a corporate trustee if you are buying a rental property. 

These instructions are: 

  • An SMSF trustee can’t own property directly on the mortgage. 
  • Until the mortgage is paid, the trustee of the bare trust will own the property. 
  • After the mortgage has been fully paid off, the property will be transferred to the SMSF trustee from the bare trustees. 
  • If the borrowing arrangement meets the LRBA conditions then the SMSF trustee can borrow amounts from the bank and associated facilities. 

 

These small complications can be tricky to handle and can make fund management difficult. For this reason, it is always better to get our services. Our tax consultants have a lot of experience in the purchasing of rental properties on a client’s behalf and will choose the best option for you

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