All Topics / General Property / Purchasing property under a superannuation fund

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  • Profile photo of DougallDougall
    Member
    @dougall
    Join Date: 2003
    Post Count: 15

    Could anyone refer me to any reading material about the benefits and/or the downside of purchasing property as a superannuation fund – it has been mentioned that there are considerable tax benefits in doing this?

    Profile photo of ansonlauansonlau
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    @ansonlau
    Join Date: 2003
    Post Count: 15

    quote:


    Could anyone refer me to any reading material about the benefits and/or the downside of purchasing property as a superannuation fund – it has been mentioned that there are considerable tax benefits in doing this?


    One thing I can think of is that generally u cannot borrow money when you purchase via a superfund, so you will have to put up the full purchase price.

    Profile photo of ChrisHallChrisHall
    Participant
    @chrishall
    Join Date: 2003
    Post Count: 21

    One book I’ve read covers this topic – ‘Anyone Can be a Millionaire’ by Sean O’Reilly. He is an Aussie as well!!

    He says that purchasing property via a super fund is not a good idea, as you need 100% cash for purchase, a super fund can not take out a loan.

    The example is given that with $200,000 you can buy several properties worth $200,000 each (use the cash as a deposit and getting various loans for each property) Over time they all (hopefully)increas in value, giving you much more worth at the end of the day (retirement) than just one $200,000 house owned by the super fund. Have a read (:

    Chris

    Profile photo of comdomcomdom
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    @comdom
    Join Date: 2003
    Post Count: 92

    Can you use your DIY superfund account as a offset account for your home or IP loan? [;)]

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    Accountant Chris Batten has some stuff on superfunds and investment properties on his site:
    http://www.chrisbatten.com.au

    Comdom, offset accounts must be in the same names as the loan accounts.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of ChrisHallChrisHall
    Participant
    @chrishall
    Join Date: 2003
    Post Count: 21

    I dought that very much, as a loan and offset are linked – supers cannot have loans, so I would take it that they cannot be linked to a loan?

    Check with a banker (difficult to get the same answer every time you call!!)

    Profile photo of comdomcomdom
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    @comdom
    Join Date: 2003
    Post Count: 92

    So if i have an ip in my name and the superfund is in my name and they are both with the same bank, is this a possible scenario?

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    Comdom,
    The superfund can’t be in your name. it will be a the name of a trust.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of comdomcomdom
    Participant
    @comdom
    Join Date: 2003
    Post Count: 92

    Thanks Terryw, I have the opportunity to withdraw my superfund from my employer to set up my own superfund and was hoping to use that money for a deposit on an investment property but i am not sure of the tax implications and if it is legal or not.But it would be great if it were possible.[;)]

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    Comdom

    I don’t think it is possible anymore. You used to be able to get to the money by setting up unit trusts and the like, but the rules ahve been tightened. there is some good info on http://www.chrisbatten.com.au

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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