Forums / Getting Technical / Legal & Accounting / PPOR and Super funds

Viewing 9 posts - 1 through 9 (of 9 total)
  • Profile photo of fishfish
    Participant
    @slipperyfish
    Join Date: 2015
    Post Count: 13

    Hi All,

    Just a question.

    I own my current PPOR outright, but am looking at relocating and do not want to sell it, more so turn it into an investment. Somebody suggested purchasing it from ourselves through our super funds, and then using the money to pay for our new property outright. I don’t think this can happen, but would be fantastic if it could.

    Perhaps someone could suggest other options, as I really do not want to go back to dealing with banks at this stage.

    Thanks in advance,

    Ian.

    Profile photo of RedwoodRedwood
    Participant
    @redwood
    Join Date: 2013
    Post Count: 340

    Hi there, correct you cannot purchase your own residential property.

    Cheers Ivan

    Redwood | REDWOOD | SMSF | PROPERTY | FINANCE
    http://redwoodadvisory.com.au
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    SMSF - PROPERTY INVESTMENT - WEALTH CREATION AND FINANCE SOLUTIONS

    Profile photo of Ethan TimorEthan Timor
    Participant
    @ethantimor
    Join Date: 2016
    Post Count: 282

    Even if, for example, your wife’s super would have bought the house that is under your name (and none of you would live there, pure investment), would you really want to? The change of ownership would cause a stamp duty event… Why not keep it as an IP under your name?

    Ethan Timor | Aligned Finance Pty Ltd
    http://www.alignedfinance.com.au/
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    Active Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 11,992

    Even if, for example, your wife’s super would have bought the house that is under your name (and none of you would live there, pure investment)

    Still wouldn’t be able to do so as she is a related party.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
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    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,110

    Hi All,
    Just a question.
    I own my current PPOR outright, but am looking at relocating and do not want to sell it, more so turn it into an investment. Somebody suggested purchasing it from ourselves through our super funds, and then using the money to pay for our new property outright. I don’t think this can happen, but would be fantastic if it could.
    Perhaps someone could suggest other options, as I really do not want to go back to dealing with banks at this stage.
    Thanks in advance,
    Ian.

    Get some legal advice on selling to a fixed unit trust. I just did this for a client where they borrow 105% of the property value to acquire the units in the trust which bought their former main residence. Loan is 100% deductible to the individuals. The cash released was used to pay down the new poor debt. No CGT land tax threshold in NSW.

    Private rulings from both osr and ago.

    The only costs were for advice and conveyancing and stamp duty.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,110

    I should say the unit trust is just one option out of many potential. There may be better alternatives.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of Ethan TimorEthan Timor
    Participant
    @ethantimor
    Join Date: 2016
    Post Count: 282

    I should say the unit trust is just one option out of many potential. There may be better alternatives.

    Is any of the alternatives stamp duty exempt?

    Ethan Timor | Aligned Finance Pty Ltd
    http://www.alignedfinance.com.au/
    Email Me | Phone Me

    Active Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,110

    Could be depending on. The situation.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of fishfish
    Participant
    @slipperyfish
    Join Date: 2015
    Post Count: 13

    Thanks everyone for your advice.

    I will look into unit trust or other options and see if that sits right with what we want to achieve. I just want my cake and eat it too! haha.

    Thanks again.

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