All Topics / The Treasure Chest / My retirement property – how should pay it off

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  • Profile photo of viralkviralk
    Member
    @viralk
    Join Date: 2003
    Post Count: 65

    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
    viral

    Profile photo of hilaryhilary
    Member
    @hilary
    Join Date: 2002
    Post Count: 146

    Your 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.

    Profile photo of ajwansajwans
    Participant
    @ajwans
    Join Date: 2002
    Post Count: 45

    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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