Revealed: The Hidden SMSF Rules That Could Cost You Tens of Thousands in Stamp Duty

Dreaming of using your super to buy an investment property? Many Australians are. But if you don’t know the correct SMSF setup process, you could unknowingly trigger double or even triple stamp duty.

Yes, really.

The Expensive Mistake? Getting the Timing Wrong

Here’s how it happens:

• You find your dream investment property

• You sign the contract before your SMSF and bare trust are fully established

• The property ends up in your personal name — and transferring it to the SMSF triggers another stamp duty event

Depending on the state you’re in, that can mean tens of thousands of dollars lost.

Here’s How to Get It Right:

1. Set up your SMSF and corporate trustee first

2. Create a bare trust (also called a holding trust) before any contracts are signed

3. Only then, have the bare trust sign the property contract

   
   

More Hidden Rules That Can Catch You:

• No negative gearing: you can’t offset SMSF property losses against your personal income

• No living in it: neither you nor your family can stay in the property, even for a night

• Borrowing is different: SMSF loans must be Limited Recourse Borrowing Arrangements (LRBA), often with higher interest rates and lower loan-to-value ratios

• Renovations? If you borrow to buy, you can’t borrow again to renovate. Any upgrades must be funded with cash from the SMSF

  
  

Final Word:

Using your SMSF to buy property can be a brilliant long-term strategy. But one wrong move can cost you thousands. Don’t risk it.

Book your free strategy call now and we’ll walk you through the setup process step-by-step — and make sure you don’t overpay a cent in stamp duty.