Smsf pension phase and depreciation

Having a chat with my dad and both of us are rookies.

We are debating the following statements
1. Can you buy property in smsf if you're Already in the pension phase?

2. "depreciation of a property bought in a smsf that is already in the pension phase doesn't count for much because you're paying no tax on the rental income anyway".

Is this true or false? Any insights or reading material?

Thanks and happy weekend

 

1. Yes you *can* (maybe, if you are thinking of borrowing - the lender may have a different opinion). Whether you *should* is a different question - you would need to look at the cash position (costs v potential tax free gain)
2. That's right, probably little or no value in the depreciation/building allowances - which may just mean your property selection isn't limited to new or newer properties.

 

A smsf in pension phase should consider cashflows. Eg. Yield on rent is say 3%. But min pension is 4%. But a property that is a tax loss may not pay tax. A property with a loan further complicates matters. A fund with accum and pension members also.

Question. On death...what occurs.?