Improvements to LRBA property

[Barney118]

I understand the improvements to property under LRBA and limitations, ie building the granny flat or adding/renovating with funds inside the fund. What is the rule once the property has no LRBA? Can you then subdivide or build units? Then the question comes down to financing it. My initial thought was to find a propert that could be subdivided at a later date and " double" your investment once the LRBA was payed off which could finance the second build using own funds.
Just to clarify if you don't need a LRBA you can buy outright and do the changes as part of wealth strategy?
Cheers
Barney

 

[Terry_w]

Hi Barney,

For staters:
SMSFR 2011/D1

Self Managed Superannuation Funds: limited recourse borrowing arrangements - application of key concepts

http://law.ato.gov.au/atolaw/view.htm?Docid=DSF/SMSFR2011D1/NAT/ATO/00001

 

[Barney118]

Terry,

I was more interested in after the LRBA has been payed off, can you then change the property into 2 seperate titles and build using SMSF cash and sell both off. Which is not allowed under LRBA. MY OP should have been more clearer.

Thanks
Barney