Retiree keen to achieve financial independence

Thank you

I take comfort in the fact that I am only 53, and hopefully still have some time to resolve this dilemma. As I mentioned in a previous post, this conversation has helped me crystallize a few possible options, for which I am very grateful to all.

 

Yes this is kind of the path i think I'd be looking at as well, but in a short-form version. ie Possibly strata the 'non-mansion' one, and transfer one each of those dwellings down the back into a SMSF for each son, done over two separate years to save on tax. Can't be done for standard resi property of course but short-term accommodation dwellings MAY* qualify as real business property (*You need to seek professional advice on this but your circumstances could well allow this?). If so, get the boys to gear up with some Super Fund Lending against each asset, and this would enable you to knock a big hole in your $2m debt, and you cover off on some succession and asset protection measures to boot, instead of waiting until you cark it. The mansion one I think I would just leave alone.

Not to be taken as specific advice - just simply putting it out there for some of the smarter brains on this forum to slice and dice for discussion purposes only. Terry where are you?

 

It depends on the area but for sure, that approach definitely has potential. Forget selling with approvals in Perth, they don't add value. In Sydney and Melbourne approvals definitely add value. I am not sure about Hobart. That's something you will need to look into.

 

Thanks for getting back to me. Makes perfect sense, given the current real estate market of the three capital cities.

 

I inquired about transferring the new development under the SMSF and was told it is not possible. And I don't understand the 'Super Fund Lending' bit, sorry.

I very much hope 'some of the smarter brains on this forum' will take an interest in this discussion topic

 

business real property can be sold to a related superfund. This includes residential property where it is 'business property'. This can include situations such as developments of residential property where it is done under revenue account, residential property used as doctors surgery etc.

A passive income block of established units probably won't be business real property unless you are in the business or property - which is rare.

 

Thank you for taking the time to advise on this matter, Terry_w. Much appreciate it.