5. Tom, another friend of X and Y, suggest that they should purchase an investment property via an SMSF structure. The property can be rented out to a tenant. David suggests rolling over all their existing superannuations and setting up an SMSF. The property is listed on the market for $950,000. Furthermore, Tom suggests, that they set up another company as a corporate trustee to assist in this process.

Assuming that they purchase it for that price

Clearly list and place an approximate dollar value on all other relevant incidental and additional costs associated with purchasing this property via the SMSF structure described above (10 marks)

Explain to X and Y, how they could go about this process i.e. how to purchase the property via the SMSF via a loan etc. Support your explanation with a diagram or flow chart depicting the steps in this process.

This is a Australian superannuation question