Hi all,
I hope somebody can help me! I will try and make this brief.
I am 35 with a wife and 3 kids. My wife works part time.
I have a house in Sydney that I used to live in and now lease to a tenant. It is slightly neg geared with a loan of about half its value, and basically looks after itself.
I live in a company owned house in the northern rivers of NSW which is rent free and supplied by my employer as part of my salary package. The company is going to sell the house and increase my salary by the equivalent value of renting as compensation. However, they will offer it to me first to buy at a low valuation, which I would love to do, as it is a river frontage and our kids are settled in the area (school etc.).
I don't want to sell my Sydney house, and I can't really afford to purchase the company house outright (about $600K), as the repayments would be uncomfortably high. I have around $300K in super, and if I could somehow use this towards the purchase, I could comfortably pay a mortgage of $300K for the other half of the purchase.
Is there any way I can structure an SMSF to do this? I can't see a way around the arms length rules? What about joint tenancy?, but then will securig will be a problem?
Can anyone help?
Thanks
As you do not own the house already and are looking to transfer it into your SMSF then there should be no dilemmas subject to the regulations governing purchase of resi property in a SMSF (whereas, if you were looking at transferring your Sydney house it would not be possible).
No you are right. You can't buy with the SMSF because you will be living in it – causes issues with the sole purpose test. Can you restructure your Sydney house eg if jointly owned buy your wife's share. This won't change your total debt, but will make more interest tax deductible. It will also have CGT implications if you are currently wnating to keep your Sydney residence as your PPOR
My belief, I am not an accountant lawyer etc.. I have a smsf.
the simple answer is no,
super can buy comercial proprty (factory, etc..) that you can rent at comercial rates but not residential that you or anybody associated with you can rent.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
