I have been looking to purchase a commercial property (medical clinic) under my SMSF and rent it back to my business. I am in the medical profession and a colleague is also looking to do the same. We are planning to go in halves. At the point of property acquisition we will also start sharing secretarial and other outgoings such as software and system maintenance. Currently we each rent our business premise from other clinics and pay our expenses separately. Trying to put it into practice and we started surfing the real estate pages a few months ago. It makes perfect sense on a high level. Current balance in my SMSF is around 250K. My business partner has a similar balance in an industry superfund. We both have good income and some exposure to property. I am the more highly leveraged of the two. Interestingly a property came up for sale and it is currently leased to allied health tenants for another few years. It is in a good location and we can both see ourselves moving into this place when the lease expires. The first problem is that we will need to change the permit from allied to medical in a few years. The second problem is that it will cost 1.4M to buy. Earlier we dismissed it for 1. being too expensive, 2. being a going concern not vacant possession; 3. residential yield at 50Kish annual rent to hold for a few years. We are just starting to look at a bit more closely as it is in a good location with decent parcel of land. For the accounting and finance gurus out there. Is there anyway of structuring this with a combination of SMSF, personal money, banks' money and going in halves? The end outcome would ideally be in a few years by the time we move into this place we have all ownership under our independent SMSF at 50-50 split and start paying a good healthy rent into it. Is there any problems with SMSF and a geared unit trust? Is there any problems with SMSF holding property changing from allied health clinic to medical clinic (ie: slightly changing the use of the property).