John Pipe is a Farm Consultant and works from a small commercial office he owns in Lake Grace. John is 53 years old and has $370,000 in Aware Superannuation. All of this superannuation is invested in cash earning 0.5% pa after fees. John is considering establishing a Self-Managed Superannuation Fund to purchase his commercial office for $220,000 and invest the remainder in managed funds. John purchased the property for $80,000 3 years ago. John also has $180,000 from an inheritance which he envisages that he will not need for over 10 years but does not want to put it into Superannuation as he will not be able to access it. John earns $168,000 (plus SGC). He is not married, has no debt and is healthy. He considers himself to have a Balanced risk profile.

Including calculations, recommend to John that he buys the commercial property in his SMSF.