Hi There,
Just wondering if there are any ways to access funds inside your Super for Renovations?
Can you go into some sort of Joint Venture with your Super Fund and split the profits?
E.g. You buy the property for $250,000-300,000 and pay for the deposit, and all other costs
Then the SMSF provides the $25,000-30,000 for the Renovation?
Cheers,
David
A SMSF and a member can jointly purchase property together as tenants in common. Or both could be unit holders of a fixed trust.
A Joint venture is possible but they way you described would breach the sis act.
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
So let’s say the SMSF has $80,000 and the member has $80,000, and the property is $250,000 and cost of renovation $25,000 – How would you structure the Joint Venture so that it doesn’t breach and sis act? Would either the SMSF, member or both be able to obtain loan of $165,000?
So let’s say the SMSF has $80,000 and the member has $80,000, and the property is $250,000 and cost of renovation $25,000 – How would you structure the Joint Venture so that it doesn’t breach and sis act? Would either the SMSF, member or both be able to obtain loan of $165,000?
It would be difficult. A SMSF cannot borrow unless the asset is held by a custodian trustee. A SMSF trustee can borrow up to 80% of the property value but it cannot borrow to improve an asset.
You will need to seek specific legal advice on how to structure something like this.
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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