Buy House & Land Packages via SMSF

Discussion in 'Superannuation, SMSF & Personal Insurance' started by Anjohn, 29th Jun, 2020.

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  1. Anjohn

    Anjohn Well-Known Member

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    Hi, is SMSF allowed to borrow money from its members to purchase House & Land packages with split contracts?
     
    Anjohn, 29th Jun, 2020
    #1
  2. SatayKing

    SatayKing Well-Known Member

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    Last edited by a moderator: 29th Jun, 2020
    SatayKing, 29th Jun, 2020
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  3. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    My understanding is super funds can't borrow money for construction.
     
    Peter_Tersteeg, 29th Jun, 2020
    #3
  4. geoffw

    geoffw Moderator Staff Member

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    There may be some ways that a super fund can enter into a joint venture. But there are only certain ways that this can be done, so care must be taken - good advice is mandatory.
     
    geoffw, 29th Jun, 2020
    #4
  5. Redwood

    Redwood Well-Known Member

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    Hi there

    You cannot get a loan with progress payments in smsf, under s67A - an smsf property will be a 10/90 contract, one part not two in that you can pay a 10% deposit and obtain a loan up to 3 months before settlement. One asset - one contract. Assuming this is met a related party loan may be feasible however i'd suggest you tread with caution and seek advice to ensure you meet super law and the conditions of pcg 2016/5 which can be complex to interpret.

    Hope that helps

    Cheers Ivan
     
    Redwood, 29th Jun, 2020
    #5
  6. Anjohn

    Anjohn Well-Known Member

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    Thanks for your reply, I’ll go get some advice
     
    Anjohn, 30th Jun, 2020
    #6