Can you top up in a SMSF property?

[RetireRich101]

This topic maybe discussed in previous threads, but I can't seem to find the answer for.

Say you purchased a SMSF property for $500K on 80 % LVR.
2 Years later this SMSF property (without any work done) grew 10% to $550K....

Am I correct to say with current SMSF legislation, you can not realize the growth by requesting top up of the new amount $550k? If yes, do we anticipate this will change in the future?
Any workaround Investor here is implementing?

 

[see_change]

Not aware of anything .

Cant imagine the govt will be keen on encouraging people to remain highly geared to property within SMSF. Will create added risk in a sector which is meant to be low risk . If anything , I've heard people suggesting the current arrangements might be scaled back . One of the reasons why I've been keen on maximizing my exposure at the moment .

Cliff

 

[geoffw]

The workaround would be to sell. Normal transaction charges will apply, of course, but CGT will be limited.

 

[Terry_w]

This topic maybe discussed in previous threads, but I can't seem to find the answer for.

Say you purchased a SMSF property for $500K on 80 % LVR.
2 Years later this SMSF property (without any work done) grew 10% to $550K....

Am I correct to say with current SMSF legislation, you can not realize the growth by requesting top up of the new amount $550k? If yes, do we anticipate this will change in the future?
Any workaround Investor here is implementing?

Thats the case. No work arounds as far as I know and no plans to change in the wind

 

[Aaron_C]

You cannot increase borrowings for an SMSF's property. Ever. For construction, top ups, blah blah. Doesn't matter.

 

[RetireRich101]

Thanks for the prompt reply.

another question:

currently the maximum LVR for SMSF for most lender is 80%, do you see this capped as the maximum in the future, or do we see higher or lower LVR?

 

[Colin Rice]

Thanks for the prompt reply.

another question:

currently the maximum LVR for SMSF for most lender is 80%, do you see this capped as the maximum in the future, or do we see higher or lower LVR?

Only time will tell on that one but I doubt it as above 80% lenders Mortgage Insurers will be involved.