All Topics / The Treasure Chest / My retirement property – how should pay it off
Dear Friends, I have got a unique problem – I have a house worth 500k and also investment property worth 500k – I have a loan of 500k.
I am planning to buy one commercial property worth 1.1m giving me 7.5% return. I know this will be positive geared property in two years time because rent will increase by that time.
Now, i wants this to be my retirement property and so i wants my Super to be a part owner of this. But the problem is i haven’t got any money into my super YET. I will be able to contribute 30k every year into my super…..can anyone tell me please how should I structure this property so my super can be a part owner of this? Please help me – I spoke my accountant and he said there is no way your super can be a partner as I have to put commercial property for mortgage –
If you can help will be really appreciate –
regards and thanks
viralYour accountant is correct, viralk.
Super rules say that property cannot have a mortgage against it.
Maybe you can put your ppor and new investment together, and your old ip can be transferred at market rates to your super fund unencumbered?
I think you are short a couple of hundred thousand for this scenario[xx(], but talk to your accountant again.
Keep us posted.Perhaps you could buy your new property in a
unit trust and have your super fund buy units
in the trust annually. This money would then
be applied by the trust to the outstanding
mortgage.It sounds like you need a creative accountant.
andy
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