Hi All,
I am re-joining this forum after approx 12 months, as I am now ready to make a move on purchasing. Prior to gaining professional advice I would like to hear the points of view of members of this forum.
I am intending on buying a block of land near Inverloch (Victorian coastal town), and building a weekender (which I can build myself). So, the only outlay will be for materials and registered trades ie: Sparky, Plumber).
The thing I would like to know is what is the best bay to structure this venture.
My situation is as follows:
Equity in PPOR = $600K
Super = $115K
Earnings = $115KAlthough looking at my total figures you would things are relatively comfortable, but as you can see most of my money is tied-up in equity and super.
Is it possible to start a SMSF and transfer the $115K minus set-up fees etc, etc into my SMSF and purchase the land (or part thereof) with this money.
If anyone has another structure that I could look into then any information would be appreciated.
Regards
Nadaimee
Why would you want to buy a weekender in you SMSF?
I doubt you could do it as it's supposed to make money. A weekender is not an investment.
Hi Nadaimee
Firstly welcome back and believe it or not you can get Professional advice on this forum also.
Accessing your equity and buying in your SMSF are 2 separate issues.
Insufficient hard data makes it difficult to provide you with some exact numbers but in essence i would look to work backwards.
Based on the fact that you are looking to acquire an IP i would look to raise 20% of the potential purchase price and acqusition costs of the IP by way of a separate sub loan secured against your PPOR.
Then look to obtain a standalone Interest only loan for the IP secured solely against the new security. This could be with a new lender to keep things nice and clean.
In saying this if you are looking a owner builder options you might be better off to look at an alternative structure and revisit the IP financing once the construction is complete as lenders are not lovers of OB's.
In regards to buying in a SMSF and accessing your Superannuation this can be done however bear in mind that you cannot occupy the property personally so buying a weekender is out of the question.
As i say difficult to comment with knowing the complete deal.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
heaps of issues with smsf. You would be unable to stay in it if you purchase in the SMSF. You would also likely to have problems building.
Since you will be owner building and have a bit of equity you might consider buying the land with an 80% LVR loan and then setting up a LOC on the PPOR and using this to complete the build. Once the project is finished yo may be able to increase the loan on it for further investing.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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