Hi in yesterdays MX (a free public transport newspaper in Victoria) someone posed the question can you access your superannuation to purchase property?
The respnse from the "financial expert" was whilst you cannot access your super to purchase a PPOR. You can however use your super funds to invest and gear into an investment property via the use of a superannuation warrant arrangement. You would need to talk to your financial advisor to find out how this can be done because it's quite complex.
How feasible is this?
ThanksVery feasable indeed and have settled around 10 deals for clients.
Loans are by way of an instalment warrant in the name of the SMSF utilising a Bare Trust and gearing can be to around 70% LVR for residential and a little less for Commercial.
Interest rates are fairly competitive although the costs come in establish the Trust structure and Corporate Trustee.
Richard Taylor | Australia's leading private lender
Thanks Richard – so you would need to fund the shortfall yourself then?
I have almost $175k in super – but not in a Self Managed Fund
Yes you will need to fund the shortfall yourself.
Richard Taylor | Australia's leading private lender
oh well that ends that – for the moment anyway
maree_bradross wrote:oh well that ends that – for the moment anywayMaybe I missed something, but you could always transfer your existing super balance into an SMSF. This transfer comes across as cash and therefore provides the deposit required.
Obviously you should seek proper advice and have a very good understanding of the costs both now and in the future let alone the risks.
A number of forum writers both here and on other forums have done this to buy property geared via their SMSF.
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