Family partnership is easier to set up and less costly to maintain, they are well suitable for those who had purchased investments in joint names while offering similar tax effectiveness to trusts via salaries paid from partnership.
From a fundamental investment point of view the historical experience that covers recessions, wars and even pandemics (in 1918) tells us that the long-term trend in shares and other growth assets is up and that trying to time bottoms is always very hard.
No one will ring the bell at the bottom, which by definition will come at a time of maximum bearishness when all the news is horrible
This reply was modified 4 years, 6 months ago by InvestJon1.
If you purchase with debt then the property must be held outside of the SMSF in a Holding Trust, but when the debt is paid off the property must be transferred to the SMSF.
The transfer can increase risk in the SMSF in the case of litigation, which can expose all your SMSF assets.
Therefore, you should consider either keeping a small outstanding loan or put in place a small member loan.
It’s also important to consider that even with a cash purchase you should put the property in a trust which the SMSF “owns”.