I was just reading that in Canada your self managed super fund can lend you money to buy realestate and thus hold the mortgage over the property and receive the interest payments.
Essentially your super fund is the financer. So interest payments go back to your super fund rather than a bank.
I guess you’d need enough money in super to buy a house first…
Darn fine idea though: buy a house and make bonus payments into your super fund.
You can do that here is Australia. As you said it needs enough money to buy the house.
It’s a pitty that a DIY Super cannot borrow morney otherwise I would have a DIY super and it would buy my house and I would rent the house from my super fund so there fore paying extra to my super fund.
ChrisAll post are IMHO.
Chris
Hate to say you missed the boat on that one. You cannot purchse a property in a SMSF and rent it back to yourself.
Cheers Richard
richard at fhog.com.au
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
My wife is Canadian and my understanding is that my sister in law and her husband saved their deposit for their home by putting it in super and they got a tax deduction for the super contributions.
So once they saved sufficient for a deposit the super fund would lend them the money to buy the house. So they in effect have a loan to the bank and pay interest to the bank and the interest on the deposit is paid to the super fund.
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