Buying a House and Land Package in an SMSF Without a Loan

Before property selection

The trustees decide whether an asset fits the fund's deed and written investment strategy. They must keep the investment for retirement purposes, deal at arm's length and make ownership clear. A licensed adviser can assess the fund's circumstances; a property agent can provide facts about land, building specifications and price. Read the source guidance.

The property discussion

On an initial call, ask for the exact land and building price, what is included, which builder is responsible, and which items might change. A “fixed price” is useful only when its inclusions, exclusions and contract conditions are visible. Obtain those documents before treating an advertised figure as the total cash needed.

Ask for the complete property picture

Price and inclusions

The written land and building price, inclusions and exclusions.

People and contracts

The builder, contracting parties and documents available for review.

Payment milestones

Deposits, progress payments and conditions that can change costs.

Contract and title

A solicitor or conveyancer should check the purchaser and title structure before anything is signed. The fund's assets must be separate from personal assets. House-and-land transactions may involve separate land and build contracts, different payment dates and duties. The adviser and solicitor should reconcile these with the fund's documents and cash position.

Through construction

Construction can bring progress payments, delays and disputes. Victorian rules govern major domestic building contracts, builder registration and domestic building insurance. Ask for the insurance certificate and review what the contract says about variations, delays, defects and completion; a fixed starting price does not eliminate every possible later cost.

Handover and letting

At handover, verify completion and the documents the fund needs for insurance, accounting and a lease. Residential property held by an SMSF cannot be occupied or rented by a member or related party. The fund remains responsible for its annual administration, audit and tax reporting after the keys are handed over.