The value of property bought by Self-Managed Superannuation Funds (SMSF) increased by 22% in the past year to a record $140 billion.Borrowing by Self-Managed Superannuation Funds to buy residential and commercial properties also increased by 22% during the same period ,according to Australian Taxation Office figures.Tracey Scotchbrook of the SMSF Association says in 2021 the biggest increase in property investment was by company owners purchasing their offices, warehouses or factories and leasing the premises back from the SMSF.The ATO figures show about $91 billion was invested in non-residential property.Tax specialist Mark Chapman of H&R Block says there are strict rules for buying property in an investment fund. He says tenants are still required to pay a market rent and while it might be a worthwhile investment for a business owner they still needed to consider if it was a good investment for their superannuation. He says owners needto take into account the yield and expected growth.
