Access equity of superfund property

[SnappyTom]

I have a business property in my smsf and need now to access the equity to invest further in property (residential or other) to supplement my loses. Iam in position to retire and can take the property out of my smsf to access the equity.
I have received other advise ,to leave the property in the fund and use warrants to access the equity( but have read that this could be with be with extra costs less flexibility and greater hassles etc).Everything else being equal is there a real difference betwen the two options

 

[Pushka]

You cant access your Super Fund or its assets at all until you reach 55, or for some, 60. Doesnt matter if you retire early, those funds are preserved on an age basis, not work status.

 

[Pat]

I have a business property in my smsf and need now to access the equity to invest further in property (residential or other) to supplement my loses. Iam in position to retire and can take the property out of my smsf to access the equity.
I have received other advise ,to leave the property in the fund and use warrants to access the equity( but have read that this could be with be with extra costs less flexibility and greater hassles etc).Everything else being equal is there a real difference betwen the two options

Hi Snappy Tom,

You will not be able to gear that property that is already in your SMSF because the warrant ( SMSF Loan ) laws require any gearing to be used for the purchase of a new asset only. Internal gearing of an existing asset in a SMSF is not allowed under this law.

If you can access your super via a lump sum, check with your Accountant whether you can, then you can access the Equity of your property in Super.

 

[SnappyTom]

Thank you Pat for your advise.Iam however looking to access the equity in the building to buy more investment property

 

[geoffw]

ST

I'm not sure why you want to supplement losses?

Super funds are very restrictive. Pat is an accountant so he knows what goes. You might need to give him a call. If your accountant is not giving you good advice give him a call. Or call another accountant you trust.

Business property and SMSFs are a minefield. Don't take advice from an internet forum.

Of course, what I am saying is NOT advice

 

[Pat]

Thank you Pat for your advise.Iam however looking to access the equity in the building to buy more investment property

Snappy,

As per my previous response the only way you can use the equity in the building is to take it out of the SMSF as a lump sum on retirement