property in super

From Financial Standard:

From Financial Standard:

Westfield Group (ASX: WDC) is Diversified Real Estate Business a with a market capitalisation of $19.19 billion and the main focus is on expanding its portfolio, primarily through the development of regional and super-regional centres.

In order to borrow, the following are required:

• Last 2 consecutive pay slips – all applicants

• Last 2 years tax returns – Personal

• Last 2 years company tax returns, P&I and balance sheets – Self Employed

• Last 2 years group certificates

• Last 2 years Tax Assessment Notices

• Letter of employment: date started, job description, employment status, base wage, YTD earnings

• 6 months current home loan statements – all loans

This part explains the steps required to allow a SMSF to purchase real estate and borrow. The process is represented diagrammatically at the end of this part.

1. Establish/review the SMSF

(a) The Trust Deed establishing the SMSF must give the Superannuation Fund Trustee power to:

• Purchase real estate,

• Borrow money, and

• Mortgage property to secure repayment of that borrowing.

How does my SMSF purchase a property?

The SMSF chooses the property it wishes to invest in, in the ordinary way. Residential property must be purchased from an arm's length vendor. Non-residential property can be purchased for full value from "related vendors" so long as the property is let for business purposes.

The Contract for Sale to purchase the property must be entered into in the name of the Property Trustee (as owner of the legal interest in the property).