SMSF Property after 65

Discussion in 'Superannuation, SMSF & Personal Insurance' started by Nath, 11th Oct, 2021.

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  1. Nath

    Nath Active Member

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    Hello All,

    Got few questions, please?

    Once over the age of 65 can one draw equity from an SMSF property? ( no debt owing)

    If looking to purchase another investment property at 65 what would be the pro's & con's of doing so through SMSF compared to not?

    Appreciate any insights thank you
     
    Nath, 11th Oct, 2021
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    no

    SMSF trustees are prohibited from borrowing. There is a small exemption when borrowing to buy a single acquireable asset.
     
    Terry_w, 11th Oct, 2021
    #2
  3. Nath

    Nath Active Member

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    sydney
    Thanks Terry,

    So only if the property was transferred out of the SMSF it could be financed against - but would incur stamp duty I would imagine?

    How about the purchase of another investment property?
     
    Nath, 11th Oct, 2021
    #3
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    There could be exemptions for duty on the transfer of a property from a trustee to a beneficiary.

    You could borrow to buy it or there it might be possible to do an inspecie transfer - each with different legal and financial consequences.
     
    Terry_w, 11th Oct, 2021
    #4
  5. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    SMSFs can do some other things. Eg Your adult kids can join and then their constributions "exchange" for you taking a pension. Complex and some legal and financial advice required.
     
    Paul@PAS, 11th Oct, 2021
    #5
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