SMSF idea

I'd like to do some combination of the following to get into a property, for illustration purpose let's say it costs 100k altogether.

1. pull out equity from PPOR (40k)
   
2. use SMSF cash balance (40k)
   
3. set up some structure combining the SMSF and myself (as an ungeared unit trust? company?)
4. in the new structure, borrow a bit of money (against the property to be jointly purchased, if possible)? (20k)
5. buy a property for 80k, and construct on it for another 20k.

Who should I get professional advice from to find out if I can do the above?
I think it might be some or all of:

• SMSF advisor
• Accountant
• SMSF law expert
• Mortage broker

Do I need to get advice from all four parties?

 

It is not possible to mortgage a property owned by a smsf and another. Actually is possible but not practical. Same with a unit trust

 

If 20% is all you are short of then try to source the funds elsewhere without making the structure unnecessarily complex.

Commercial LRBA legal costs can be a fair chunk and if the project size is rather small then it'll eat into your profit margin quite quickly.

 

The numbers involved in the op make no sense.

 

For #3 I meant to say unit trust (doesn’t make sense to say ungeared UT and then say it needs to borrow)

I think the numbers would roughly make sense otherwise?

eg in the case of buying an existing property and then building a granny flat on it.

Welcome any additional feedback

 

None of it make sense.

The unit trust cant borrow
The unit trust cant maintain a borrowing and any arrangement to bypass that is prohibited
In-house asset limits
The trust property cant be used as loan security

SIS Regulation 13.22C/D