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purchasing in super

Discussion in 'Superannuation, SMSF & Personal Insurance' started by frankie, 16th Jun, 2008.

  1. frankie

    frankie Member

    Joined:
    14th Oct, 2007
    Posts:
    9
    Location:
    sydney
    We are thinking of setting up an SMSF (we have about 250K in super) to borrow and then purchase a business premises.

    Is it worth/possible borrowing 450K to buy the premise?

    Can my husband and I then work in the premise and pay rent to our super? Is this allowed ie arms length etc...

    Has anyone got experience with this, been through the process? Any advice would be helpful.

    Thanks
     
  2. DaveA

    DaveA Well-Known Member

    Joined:
    19th Feb, 2007
    Posts:
    617
    Location:
    Sydney, NSW
    as far as i know its all legal...

    couple of things to check..

    max LVRs are around 70%
    interest rates are going to be 10.5% or so (lower the lvr the lower the interest rate)
    rent MUST be at arms length transactions....

    maybe others can be more helpful
     
  3. Billv

    Billv Getting there

    Joined:
    15th Jul, 2007
    Posts:
    1,796
    Location:
    Sydney, NSW
    I believe it's doable as long as you pay market rent
    For more details have a talk to Mike
    He specialises in SMSF lending

    Mike Feltscheer
    Navigator Financial Solutions
    (P) 02 9263 2631 (F) 02 9263 2800 (M) 0401 992 641

    Cheers