A great question was posed to the Financial Review regarding business property:
“…highlights two important reasons why SMSFs invest in a business property, which is the category of property that two-thirds of SMSFs that buy real estate choose. This property could be a shop, an office, a factory, a workshop, a farm or storage shed as you propose.
One is the entitlement that SMSFs have to buy a property that can be leased to fund members, or someone related to a member, who own a business.
Another, that applies specifically to rural land, is the right to live in a farmhouse located on the land. You can only do this if the house area is less than two hectares and the farm engages in commercially viable primary production. It can’t just be a hobby farm.”
There are some technical considerations – particularly if purchasing a farm, but the ability to use the commercial property for your business can be a fantastic strategy.