Overview

The property purchase generally takes up two steps.

The first step to record the deposit (Contract date), with the subsequent settlement recorded at a later (settlement) date.

The below example is designed to assist in the process of recording a property purchase in Simple Fund 360. This example also incorporates a loan liability due to the limited recourse borrowing arrangement entered into by the trustees of the SMSF to purchase the property.

Sample Settlement Statement

Property: 123 Fake Street, Toorak, Victoria, 3142

Contract Date: 01/08/2025

Settlement Date: 30/09/2025

How to Process

Create Accounts

From the Main Toolbar, go to Investments.
Select Property Dashboard from the list.

1. From the Property Dashboard, click Add Property.
   
   
    
2. Enter the Address of the property (123 Fake Street, Toorak, Vic, 3142). 
   
    
3. Select the Property type as Australian - Residential. 
   
    
4. From the Add Property screen, input unique Account Code (IP-001).

5. Input the Security Details. 

   Details	Explanation
   Subject to CGT	Toggling this on will cause the system to calculate Capital Gains Tax on the property when it is sold by the fund.
   LRBA/Loan	Toggling this on will cause the system to create a linked LRBA account for the property, as well as include the property value in Section H Label J of the tax return.
   Report Property Count on Annual Return	Adds the property to Section H Label J7 in the tax return.

6. Click Save. Account 77200/IP-001 will now be added to the fund's Chart of Accounts.
   
7. Select Add Valuation and input the Date as 30/06/2026. Now enter the Valuation of $500,000.00 and select Save. This is to ensure that there are no revaluation issues once create entries is processed to the end of year.
   
   

Record Deposit

From the Main Toolbar, go to Accounting.
Select Transaction list
Select New Transaction.
Select Bank Statement.

From the Transaction List record the $100,000.00 deposit paid from the Bank account.

Select Post to save the transaction.

Record Settlement

From the Main Toolbar, go to Accounting.
Select Transaction list
Select New Transaction.
Select Bank Statement.

From the Transaction List, record the Settlement transaction. In this case, the net settlement amount of 447,085.00 is paid via $200,000 cash and $247,085.00 from a Loan (LRBA)

• Disbursements which are expensed will be allocated to the relevant expense account
• To be capitalised and not expensed, disbursements need to have 0 units entered to adjust the cost base.

See Also

• Limited Recourse Borrowing Arrangements (LRBA)
• Transaction Input and Smart Matching for future loan repayments
• Transfer Real Estate Asset from Residential to Non Residential
• Rental Properties