We are currently considering purchasing acres on fringe of town on which to build a new PPoR.
We currently live in a home, unencumbered by mortgage, on which we are in process of developing frreestanding garage which currently has 2 bedrooms, bathroom etc upstairs into a 2 bedroom townhouse and having separate title after subdivision which is in process(we are on 2 frontages).
The "current" (will take 12 months to be marketable separately) market values of the 2 are 800K and 400K.
We have been working on the basis of having to sell these to fund the new home on acres which is going to cost about 1.6 mill total, but it has suddenly dawned on us that we are probably better to keep them, put in tennants, release equity etc.
We are able to kick in about 700K on top of what we do release.
Realising I need to get formal advice, just to give me a bit of a handle on things, would someone please be able to advise firstly if this all sounds like a good idea and, if so, the best structure and mechanism to get the current two properties into my smsf, with reference to CGT and anything else I may not be considering. (If indeed my smsf is the best way to go as I suspect it is)
Will a bank loan me against equity in smsf to fund new place?
Is the outlay for improvements/subdivision costs (about 100K) deductible and if so, do I need to set up the new ownership structure in advance of expenditure?
Any advice would be much appreciated.
Thanks
lazza
We currently live in a home, unencumbered by mortgage, on which we are in process of developing frreestanding garage which currently has 2 bedrooms, bathroom etc upstairs into a 2 bedroom townhouse and having separate title after subdivision which is in process(we are on 2 frontages).
The "current" (will take 12 months to be marketable separately) market values of the 2 are 800K and 400K.
We have been working on the basis of having to sell these to fund the new home on acres which is going to cost about 1.6 mill total, but it has suddenly dawned on us that we are probably better to keep them, put in tennants, release equity etc.
We are able to kick in about 700K on top of what we do release.
Realising I need to get formal advice, just to give me a bit of a handle on things, would someone please be able to advise firstly if this all sounds like a good idea and, if so, the best structure and mechanism to get the current two properties into my smsf, with reference to CGT and anything else I may not be considering. (If indeed my smsf is the best way to go as I suspect it is)
Will a bank loan me against equity in smsf to fund new place?
Is the outlay for improvements/subdivision costs (about 100K) deductible and if so, do I need to set up the new ownership structure in advance of expenditure?
Any advice would be much appreciated.
Thanks
lazza