The bare trust sits at the centre of every SMSF limited recourse borrowing arrangement, yet most trustees only vaguely understand what it does. Getting the documentation wrong can trigger a prohibited transaction and put your entire fund at risk.
Peak property seasons create a perfect storm for SMSF settlements, with lenders, auditors, and settlement agents all stretched thin. Based on our experience handling over 2,500 SMSF property transactions, the difference between a smooth settlement and a costly disaster often comes down to preparation that starts weeks before most trustees even think about it.
The decision between buying property through your SMSF or in your personal name involves far more than tax rates. From bare trust requirements to borrowing restrictions, the legal structures differ so dramatically that choosing wrong can cost tens of thousands in unnecessary duty and penalties.