What can I do with this financial cirscumstance?

I am planning to acquire another CIP around $800,000-$1,000,00. However, my available cash is about $200,000 and super is just a little above $100,000. I think about set up a SMSF to fund .the next CIP. As max LVR for CIP is 70%, can I use mix cash and SMSF to deposit for a CIP investment ?

Do you think any better options for my circumstance?

 

200k will need to be deposited into super - taxed on this..

 

SMSF 10% liquidity will knock that idea on the head. 70% lvr will also bump your lending rate up significantly.

You can buy in a unit trust to not have to put your cash into super, but not many lenders will take this arrangement

 

Thanks for all your replies.

Hi DaveM

Do you mean that I can set up a trust, buy some trust units using cash and some trust units using super fund? Is it correct? do you know which lenders accept this?

 

No lender will accept the trust property as security as it would be a breach of the sis act to mortgage the property unless it isna widely held trust which related parties did not control.

But the non smsf owner could borrow to fund their purchase of units without mortgaging the trust property.

 

Without knowing your personal circumstances it is hard to comment, but using a $300k SMSF to fund a $1m investment property seems like a really bad idea on the face of it.

 

Injecting the cash into the SMSF would be a non concessional contribution, you'd just need to make sure you haven't exceeded the cap under the current regulations and then you'd be OK - Contribution caps | Australian Taxation Office

Cutting it a little tight for a 1mil purchase, but you'd be within range for a 800k purchase if structured correctly.

Best to speak to an adviser for specific advice on this - SMSF is not an area for the uninformed to get themselves stuck.