- wilko1Participant@wilko1Join Date: 2010Post Count: 510
Does anyone know If you own a property outright in your Superfund. (Ie you had a previous non recourse loan that has now paid off)
Can you take finance out against that property up to 80% again (Ie a new non recourse loan)TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213wilko1 wrote:Does anyone know If you own a property outright in your Superfund. (Ie you had a previous non recourse loan that has now paid off)
Can you take finance out against that property up to 80% again (Ie a new non recourse loan)
No you cannot. Borrowing can only be done to acquire an asset.Colin RiceParticipant@fmsJoin Date: 2011Post Count: 338
The only borrowing allowed is for the original property and once paid down can not be re accessed as far as I am aware.
An offset account is available with some SMSF loan products with interest only up to 15 years available.
This could be a better option for your next SMSF property if you wanted to preserve the funds that you would normally use to pay down the loan.
Always best to consult your accountant/financial planner to ensure you are complying with the SIS act whenever it comes to your SMSF.Mick CParticipant@shapeJoin Date: 2010Post Count: 1,099Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,024
As said previously hate to say "No".
Nothing to stop you refinancing one SMSF loan with another SMSF loan (cheaper rate or better terms) but you cannot increase the borrowings.
Yours in Finance
Richard Taylor | Australia's leading private lenderJimmy86Participant@jimmy86Join Date: 2013Post Count: 46Arun BhutaParticipant@arun-bhutaJoin Date: 2014Post Count: 41
You can not use the property fully paid for borrowing for deposit or as collateral, but rental income can be considered for serviceability for next property.
That is why you need to take loan in SMSF with offset account with interest only, this allows you to pay the loan in offset and keep loan out standing.