All Topics / Legal & Accounting / Establishing SMSF to buy existing IP

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  • Profile photo of EzEz
    Member
    @ez
    Join Date: 2010
    Post Count: 26

    Hi,
    I was just wondering if anyone had been in the same position as I am. This is….forced to sell an IP (even though close to being positiely geared) to obatin equity for PPOR. I started to think should I look into a SMSF in order to purchase the IP from myself (?). We only have about $170k jointly in super at the momemnt and the sale price of our IP would be in the $480k mark. Does anyone have any thoughts on this or even whether or not I should investigate this further with an accountant?
    Thanks in advance.

    Profile photo of IP FreelyIP Freely
    Member
    @ip-freely
    Join Date: 2008
    Post Count: 353

    if your IP is residential, forget about it as it is not permitted.

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    Your superfund is not allowed to buy property from you.  It needs to be an arms length sale (ie not purchased from you or an immediate family member).

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    Although you can purchase commercial property from a related party eg your own business premises.

    Profile photo of EzEz
    Member
    @ez
    Join Date: 2010
    Post Count: 26

    Thanks for all you advice, greatly apprecaited.

    Profile photo of Grow SMSFGrow SMSF
    Participant
    @evolve
    Join Date: 2009
    Post Count: 66

    Sounds like you have enough in super to use a SMSF and a limited recourse loan to purchase a property in your SMSF, however your SMSF will not be able to acquire a residential property that you currently own.

    If you are forced to sell your IP there is nothing stopping you purchasing a different property with a SMSF to keep your property portfolio heading in the right direction.  With $170k you should be able to find something that will be neutrally or positively geared.

    Grow SMSF | Grow SMSF
    https://growsmsf.com.au
    Email Me | Phone Me

    Self-Managed Super Fund (SMSF) Specialist Accountants

Viewing 6 posts - 1 through 6 (of 6 total)

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