Hello all.
Has anyone purchased a property using an individual as one owner and a propriety limited or DIY superannuation fund as the other owner (ie, joint tenants)?
As I understand it in NSW, any joint tenants are considered to have an equal share, or 50/50 stake, in the property unless otherwise indicated, presumably by a legal document detailing the partnership.
In this instance, what basic issues need to be included in such a document for non-equal shares in the property, such as an 80/20 stake?
With regards to superannuation funds, I have read that legislation does not allow them to borrow funds for investment purposes. Is this correct?
Any feedback that helps is really appreciated.
Hi,
I’m not sure about the tenants in common issue and being deemed to have an equal interest. This seems a little bit odd to me as just recently I inspected a property here in Victoria where the title showed three tenants in common with a 60:20:20 split.
This seems to be confirmed by a NSW specific web site I found when doing a search which says:
quote:
as “tenants in common”. This doesn’t mean that you are tenants, it means that you each own a certain percentage of the property (usually 50%) and you can deal with your percentage however you want to.Still – it would be wise to get some legal advice on this before making a final conclusion.
Now as to superannuation funds. It is true that Superannuation Funds cannot borrow, which generally makes them an unattractive vehicle in which to buy direct property since the cash on cash returns are so low.
However listed property trusts (and indeed options in listed property trusts) are an acceptable investment option for super funds that allow exposure to property with some degree of leverage.
Bye
Steve McKnight
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
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