We receive many questions from readers about investing in property using superannuation money. Questions range from: ‘Can I withdraw my super to buy a house to live in?’, right through to ‘How can I use my super fund to borrow money to invest in property?’.For the convenience of our 2.5 million-plus readers, we ... Read more
SMSF investment: Where can I find information about SMSF borrowing?
Q: I’ve just finished reading DIY Super For Dummies and found it really helpful. What interested me was the borrowing options for SMSFs. We already own a property in our fund and we are looking at using borrowings for financing our next fund purchase. In your book, you mention a joint venture to invest in property with ... Read more
SMSF borrowing: Investing in property (what’s OK and NOT OK)
If you run a self-managed superannuation fund, you can invest in all types of real property, including residential property, commercial property, industrial property and even a farm (under certain circumstances).Before September 2007, the capacity to use borrowed money to purchase an SMSF asset, such as real ... Read more
Accessing super to purchase first home
Q: I am 56 years of age. Can I use my super to purchase my first home in Australia?The answer is no, and yes.The general rule is that you must satisfy a condition of release to access super and wanting to buy a property to live in, is not considered a condition of release.The ‘yes’ bit starts now.If an ... Read more
Know your super limits: Reducing CGT via concessional contributions
Q: I am one of those people (and my wife) who made the decision years ago to invest in property rather than super. Now at 60, (wife 57) I am retired and live off my property investments. I would like to get rid of the properties at about age 65. Mainly because of the worry, and maintenance upkeep, and to give us more ... Read more
SMSF borrowing: Related party LRBAs must be on arm’s length basis
Note: This article deals specifically with SMSF limited recourse borrowing arrangements (LRBAs) financed by related parties, rather than financial organisations. If you’re seeking general information on SMSF borrowing and LRBAs, see SuperGuide articles SMSF basics: Can my DIY super fund borrow money? and SMSF ... Read more
Accessing super for a home loan deposit?
Q: A few years back my wife and I owned six homes, before we were caught out by a marketeer over an investment. We lost it all. Not good when you consider we are in our 50s. Now 58, we are looking at trying to by a modest unit or home, within the next two years. Would we both be able to cash in our super funds toward a ... Read more
SMSF basics: Can my DIY super fund buy my residential investment property?
Q: I own a residential unit as an investment property as a personal investment. I would like to keep this unit as long as possible. The unit is a safe income stream and a safe haven against market uncertainty. However, if I have to sell it later, I won’t be able to put the money into my SMSF because of the work test ... Read more
SMSF investment: Can we sell fund assets to members?
Q: We understand that SMSFs cannot purchase property from members. What we want to know is whether members can purchase property owned by the SMSF, providing fair market valuation is paid for this? Does the valuation need to be established through a valuation, or is an appraisal sufficient? Our SMSF currently jointly ... Read more
SMSF basics: Can my DIY super fund borrow money?
The general rule is that your super fund can’t borrow money, although like all rules the ‘no borrowing’ rule has some exceptions. SMSF trustees need to understand the difference between direct borrowing and indirect borrowing and the special rules that apply to each exception.A relaxation of the super rules in 2007 ... Read more
Revisited: Is property a good investment for your SMSF?
We receive a steady stream of emails seeking information about investing in property via an SMSF. In response to this continued interest, we have revisited the popular question, is property a good investment for your SMSF?The question (is property a suitable investment for an SMSF?) is an important one, and the ... Read more
SMSF investment: Borrowing to invest can be the means, not the end
As a property and share investor for 30 years, I believe the use of borrowing can be a legitimate means to purchase assets, but gearing is not an investment in itself: it is simply a means to invest with associated costs and extra risk.Over the years, I have spoken to thousands of Australians about super and ... Read more
