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  • Profile photo of salockersalocker
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    @salocker
    Join Date: 2005
    Post Count: 14
    June 20, 2006 - 8:59 am

    Thanks for your feedback

    Profile photo of salockersalocker
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    @salocker
    Join Date: 2005
    Post Count: 14
    June 13, 2006 - 11:47 am

    Thanks for all your comments.

    I have this in mind to invest in property, is it feasible?

    1) Buy Property value of $500k using a HDT structure – 500 Units
    2) Unit Holders as follows- SMSF 100 Units, Mum & Dad 400 Units
    3) Bank Loan for Mum & Dad for $400k

    With point 2, does it pass the arms length test?
    With point 3, will the lenders loan mum & dad(highest income) $400k, with security over the property purchased for $500k?
    Also due to the security over the property will this break the SMSF rules?

    I realise that I do need to meet a professional with this but would be grateful for initial feedback. Also any alternate ways to do this then pls advise.

    Thanks
    Salocker

    Profile photo of salockersalocker
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    @salocker
    Join Date: 2005
    Post Count: 14
    June 11, 2006 - 1:05 am

    Thanks Cata

    For clarification purposes…….

    Are you saying their property warrants will be “outlawed” by 2009 or was it the SMSF invetsing into a unit trust?

    Profile photo of salockersalocker
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    @salocker
    Join Date: 2005
    Post Count: 14
    June 10, 2006 - 11:06 am

    Thx Terry & Cata,

    Terry – That was what I was thinking re. the loan between the two entities.

    Profile photo of salockersalocker
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    @salocker
    Join Date: 2005
    Post Count: 14
    April 4, 2005 - 12:24 pm

    wow that is serious stuff. I think I should change tact [cigar]

    Thanks again for all the posts.

    Profile photo of salockersalocker
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    @salocker
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    Post Count: 14
    April 3, 2005 - 10:48 pm

    Im sorry I should of stated the PPOR is now an IP and has been for the last 3 years. I have been claiming the Interest already as a tax deeduction.
    I would like to know if I increase the loan size from $280k back to the origianl laon amount ($300k) will the $20k be still tax deductable.
    The loan is interest only

    Profile photo of salockersalocker
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    @salocker
    Join Date: 2005
    Post Count: 14
    April 3, 2005 - 11:36 am

    Thanks for the info guys.

    The reason I was doing it this way was to….

    1)Allow my parents to stay in the apt from overseas for 3-6 months
    2)Later on the superfund is to buy units from my parents (within the unit trust) therefore giving
    the cashflow in their retirement. This way Tsfr tax dosn’t apply as the unit trust is still the owner of the property.
    3) Superfund increases asset value over the years

    I appreciate that it could be thin ice but it seems so logical. Any alternative ideas would be welcomed.
    Thanks

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