Property in SMSFs not a looming 'disaster': SMSFOA
The “noise” about the danger of property in SMSFs is coming from parties that are anti-SMSF, according to the SMSF Owners’ Alliance (SMSFOA).
Speaking at the Morningstar SMSF Trustee Strategy Day in Sydney last week, SMSFOA chairman Bruce Foy said people are led to believe there are “lots of traps” associated with property in SMSFs.
“I think there is a fair bit of noise out there about this issue and it is purely coming from those parties that are anti-SMSF, in my view,” he said.
“I don’t think there is a disaster waiting to happen, as some people would have you believe, and I think some of the larger APRA-regulated funds and even the industry funds have a vested interest in not losing money to SMSFs,” he added.
“I think property is a terrific asset class and if you can invest, you should.”
However, Oasis Wealth principal Barbara Smith said trustees should be aware of the “complexities” of transferring property from their own name to their SMSF.
“If you bought something in your own hands, you are going to incur capital gains tax and have all the stamp duty hoops to go through, so I don’t think it is worth transferring property out of your own hands and into your super fund,” she said.