If I buy a property using my super and that property increases in value and I want to borrow against this property does this money belong to my super too? ie. any IPs I buy using the loan secured against my SSMF property also become part of my SMSF?
If your smsf takes out a loan to purchase property. That property then increases in value. You wont be able to redraw any funds or access any of that equity unless you either sell or refinance with another bank setting up another loan (costly, 2-4k at least)
and yes as you bought the property in your super any equity that property gains belongs to your super.
Cannot cross collateral in superfunds stand-alone loans only
You cannot increase a loan in a SMSF of use the equity in any way. super owned property cannot be mortgaged.
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
How about remortgaged ? Ie property owned for 10 years in smsf and then they start a new non recourse loan with another bank?
wilko1 wrote:How about remortgaged ? Ie property owned for 10 years in smsf and then they start a new non recourse loan with another bank?Only refinanced to the exact same loan amount – same at date of refinance not the original loan amount.
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
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