The most tax effective way to purchase a commercial property #property

If you run your own business and have the opportunity to purchase the property you operate from, it's worth paying close attention to.

Buying your business premises inside a self-managed super fund can be a really powerful strategy and here's why. Instead of your lease payments going to a landlord and out of your world entirely, they go to an entity you own. The wealth stays within your family and your broader accumulation strategy, while you still get to claim those lease payments as a legitimate business expense. It's a win on both sides.

That said, it's really important not to let property become your fund's only asset. Commercial property is expensive, and if too much of your super is tied up in it, you can run into liquidity issues down the track. When you hit retirement age and need to start drawing a pension, you need to be able to meet those minimum payment requirements and a property you can't easily sell in a hurry won't always help you do that.

So while the strategy itself is a great one, make sure you're still making regular contributions, holding other assets, and keeping a healthy cash balance in the fund alongside the property. Diversification inside your SMSF matters just as much as it does anywhere else.

General advice only. Amy Lehmann is an Authorised Representative (No. 1292710) of Consortium Private Wealth Pty Ltd (AFS Licence 495401).
#SMSFStrategy #CommercialProperty #BusinessWealth #Superannuation #FinancialPlanning