The Biggest Mistakes When Buying Property in Super
Buying property in super is a complex strategy. There are so many different parties involved in the process which often results in the left hand not entirely understanding what the right hand is doing. These are the most common mistakes we see when buying property in super;
1. Wrong name on the property contract – When buying with a loan, it is the Corporate Trustee of the Bare Trust that needs to be on the front page of the contract.
2. Wrong name on the loan – This should be the Trustee of the Self Managed Super Fund, not the Bare Trust which goes on the front page of the contract.
3. Missing Documentation – There are multiple pieces of information that need to be signed and updated when you buy a property in super – this includes the Trust Deed and Investment Strategy which are often neglected and out of date.
4. Wrong Bank Account – The rent and all associated property expenses/interest must go and come from the super bank account.
There are many more mistakes that can occur when buying property in super, it is important that you get specialised advice because the consequences of getting it wrong can be quite severe.