Hi guys
My brother and I are looking at starting a new business and we currently have SMSF setup and have not invested as yet.
I generally understand the arms length rulings for residential, and I do realise they are relaxed for commercial as well.
What we want to do is buy a commercial property, then lease it to a company we are directors of, to run a business. Is it a requirement to have a property manager or can we do this ourselves, seems to make sense since to me.
Are there any other things that could be an issue?
Gee, do you think that you could trust the tenant?
There’s no requirement to engage a PM, just ensure that you have a lease in place and provide tax invoices etc to the business.
Paullie wrote:Hi guysMy brother and I are looking at starting a new business and we currently have SMSF setup and have not invested as yet.
I generally understand the arms length rulings for residential, and I do realise they are relaxed for commercial as well.
What we want to do is buy a commercial property, then lease it to a company we are directors of, to run a business. Is it a requirement to have a property manager or can we do this ourselves, seems to make sense since to me.
Are there any other things that could be an issue?
Still has to be at arms length. You must have contracts in place and everything you would do normally with a normal tenant. No need for an agent though.
You probably should get a valuation of some sort to prove market rent.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Yep cool, thanks guys.
Good idea about the valuation.
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