Moving Property to a SMSF

Is this possible?

We have a property that we would ideally like to move into our SMSF and have a few questions for those with expertise in the area.

1. While I understand that you can't transfer or sell property that you own in your own name directly to a SMSF but could you legally sell the property to your parents then buy it off them in the SMSF? Obviously, I am aware that this will incur 2 sets of SD but feel that if this is a possibility it might be worth paying.

2. The property is under 50 sqm and is currently unemcumbered due to this reason. Would this present a problem for the loan we get for the SMSF?

3. Are there any other implications that people can think of with this strategy?
 
Has to be arm's length. Your parents or anyone you know is not arm's length.

Most lenders won't touch anything under 50sqm for lending against an asset in a super fund (well, technically in a custodian trust on behalf of the super fund).
 
Thanks MJA I did suspect that it would be a no no.

The under 50 sqm is proving to be a real pain. Will chalk that one up to experience!
 
1. While I understand that you can't transfer or sell property that you own in your own name directly to a SMSF

I think you will find this only applies to residential property. Commercial is a different kettle of fish and a much more attractive proposition from this perspective.
 
If the property is a pain, why are you willing to pay two lots of stamp duty and capital gains tax to keep it?

Capital Gains tax is not going to be an issue at the moment cause there is none! :rolleyes: We bought in July 2008 just before the crash. I beleive that the property is worth keeping because of the yield but am finding that the fact it is unencumbered and banks won't use it as security due to the size is hindering further purchases.
 
If the property had been held in a unit trust then the same issues would not have applied but it is too late for that.

It has certainly been a valuable lesson in buying property in the right entity and making sure the finance is set up correctly.
 
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