Real Estate and Self Managed Super Fund Requirements

Owning property in a SMSF (Self-Managed Super Fund) can be a great way to invest in your retirement. Owning property in a SMSF gives power back to you to choose and manage how and where your superannuation monies are being invested and with the right advice and the right decisions can make your retirement a more than comfortable one.

Setting up and purchasing a property in a SMSF requires guidance and advice from professionals in that field to make sure it’s all done as per the rules and regulations but that’s not where it ends. Once  you have purchased a property in your SMSF there are a number of requirements that you need to meet on a regular and ongoing basis including annual financial reports.

The ATO says “For preparing SMSF financial reports, an external valuation of real property is not required each year. A recent valuation however would be prudent if you expect that the valuation is now materially inaccurate or an event occurred that may have affected the value of the property since it was last valued. This may be due to a change in market conditions or a natural disaster. When valuing real property, relevant factors and considerations may include:

  • The value of similar properties
  • The amount that was paid for the property in an arm’s length market
  • Independent appraisals
  • Whether the property has undergone improvements since it was last valued
  • For commercial properties, net income yields”

Giving consideration to the substantial changes in values of properties we’ve seen in the past 12 months I’d suggest that if you own property in a SMSF and you haven’t had an updated valuation on the property then it would be a good time to do so now in order to keep yourself compliant with your SMSF reporting requirements.

The ATO says “When valuing real property assets for SMSF financial reports, the valuation may be undertaken by anyone as long as it is based on objective and supportable data. A valuation undertaken by a property valuation service provider, including online services or real estate agent would be acceptable.”

If you’re looking for a valuation for property held in your SMSF then complete your report here and now at