All Topics / Help Needed! / SMSF for a granny flat???

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  • Profile photo of Wilson101Wilson101
    Join Date: 2024
    Post Count: 0

    Hi, many apologies in advance to the long winded potentially convoluted, way around asking, but here goes…..

    I purchased a house with a “multi purpose/granny flat” above the garage. The Bank was awesome and have split the mortgage into 2, to claim tax benefits as a “rental”. They have calculated the percentage of ground coverage of the “granny flat(GF)” 33% to the “main house(MH)” to calculate the mortgage amounts.

    Some math that was rolling around in my head but not sure how to ask the right questions to get the answers. I hope someone can follow along……😁😁😁

    GF mortgage $550K(neg geared, $450pw rent, MH contribution pw for GF mortgage is $350)

    MH mortgage $327K, SMSF amount available is$350K

    If possible, GF increases mortgage by $327K, using equity and “cashes out that amount out”. SMSF buys into GF, mortgage back to $550K. Cash out has been moved it MH mortgage/now “paid off”.

    SMSF invested into “GF”, MH is now NO mortgage and I can still live in The main house as the SMSF, is invested NOT in my home?

    personally i now don’t have a mortgage per’say, So now I can now invest in another property?

    OR have I just gone the long way round to get to the same spot?

    So……. potential short question to find a way to make it happen.  How can I use my $350K in my super to pay my personal mortgage off and still live in my home? I like the colour “grey” around these types of things instead of the hard “black and white”! I’m young and still have 25yrs of working ahead of me.

    Can I use my super to invest into the “granny flat” ? As I don’t live in the granny flat, but live the main house to pay my portion of my mortgage off without falling into trouble’ish…..?…😎😎😎

    Can/should I strata title the granny flat to achieve a possible outcome with my crazy thought as to how I could make it all work?

    Cheers T.

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