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This is a strategy to consider, particularly if you plan to retire in 10-15 years. Wealthy You explains:
“While you can’t purchase a property to live in with your SMSF while you’re still working, you can however purchase a home which you can live in when you are fully retired.
This means that your SMSF can purchase an investment property, which you’d eventually like to live in and rent it out until you retire. It must be noted though, that the property needs to be rented to a totally unrelated third party at market value and cannot be rented to family members or friends….
Once you retire and start receiving regular retirement income from your SMSF you can sell your existing family home, which you are currently living in, and put the proceeds into your SMSF. This is regarded as a contribution to your fund and will ,of course, be subject to any contribution caps that apply to your own personal situation.
After this has been done, you can then transfer the title of your investment property from your SMSF into your own name. This effectively means that you are purchasing your retirement property from your superannuation fund.
So if you’ve always dreamed of retiring to a lovely coastal home or a spacious city apartment, you can now afford to do so by using the investment funds in your SMSF.”
It is also important to note that your SMSF can borrow from a bank to buy your perfect retirement home NOW.