When it comes to SMSF property investments, there are two key risks to think about.
- Your self managed super fund must pay a market rate for things it buys or services it receives. If it doesn't, you risk creating a situation where the fund pays extra tax on its income.
- There are strict rules around whether your self managed super fund can acquire property from other parties (ranging from things you'd automatically view as assets – like shares, property, etc – to things you might not expect like building materials).
Getting either of these wrong with your SMSF can create problems that are way out of proportion to the actual mischief in the first place.