I was just wondering whether it is possible to access my super fund and use it as deposits for IPs. Currently, my employer is paying 9% into their nominated super fund, what I had in mind is that I set up a self managed super fund (SMSF) and appoint my accountant to be the manager for the fund:
1) I can either access the fund by using them as deposits for IPs in Australia or overseas
OR
2) The SMSF lend the fund to me at going market rate (which I am not sure whether it is classified as dealing at arms length according to ATO?)
The reason I ask is that I know of other people at my workplace that set up SMSF to purchase shares to build on their superannuation. If shares is legal, why is investment properties any different from shares?
Cheers
johnWant to join financial independence before 31 years old, currently 25
Can’t really be done like that. it may be possible somehow, but would be costly to setup.
look at http://www.chrisbatten.com.au for some info on smsf and proeprty.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi
I know where you’re coming from. I’ve just started my own super fund with my family. I know the super can’t lend money to us because it needs to be at arms length.
I was possibly thinking of setting up a trust account which the super would give money to, to invest in some property (and I would also contribute money to the trust acc to fund the diff).
I’m hoping this may be possible – but it needs more research. I think it should be possible somehow too. As longs as the investment is legit -I don’t understand why it can’t be done.
Check with your employer too that they will pay into your fund. You may have to wait till July when you can nominate your own super fund for employer payments.
Hi Guys,
Rellie is right, the way it can be done is to setup a unit trust, and both the superfund and yourself buy units in the trust and the trust then buys the property.
The only problem is that the property must be unencumbered for the superfund to remain complying. ie you cant borrow against the property to fund your part.the only way it can be done is if you can pay cash for your share, or borrow using other properties you own as the security.
jcls79, you also need to consider the costs of a SMSF, including setup and ongoing accounting and audit etc. At 25 you probably dont have much money in super, and these costs might out weigh the benefits.
Hope this helps, if not send me an email and ill try to clarify.
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