Yes, SMSFs can now both invest in and borrow to purchase real estate. However you must use a structure established for this purpose and certain conditions must be met. Residential property must remain at arm’s length and cannot be purchased from a related party and must also be leased to an unrelated third party.
You cannot rent residential property from your own SMSF. However under some circumstances you may be able to rent a commercial property if it is for business purposes – for example a medical practice renting the premises owned by one of the Drs. The rent must be set at a market rate and the premises will need to be for running your business.
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