Smsf Property Investment. It is important that trustees understand this is not a set and forget issue. Smsfs can invest in commercial or residential property;
As the property is a lumpy, indivisible asset, trustees need to ensure that there is sufficient liquidity to meet ongoing. Where the property is going to be the main asset of the smsf, the investment strategy needs to address the issue of liquidity, particularly because the trustee cannot grant a charge over the property to borrow, to assist with cash shortfalls. Therefore, a bare trust structure is put in place to facilitate the loans.