I would say no to all of these questions.
Thanks for this Terry, for any else interested I also followed the below questions up with a meeting with my smsf accountant (who is also an smsf auditor) I will try and paraphrase his answers.
Looking to purchase a unit that requires a minor cosmetic reno (thats what I do best so Im sticking to the formula) - I often buy houses outside smsf but a unit this time for location. No major renos that would fundamentally alter the asset and I know I have to use funds for the reno, no borrowings as its likely to be deemed an improvement upfront not maintenance.
Strategy is ok
Property will not be in the area where we live.
Location flexibility is fine
My questions:
1 When I reno the unit (looking to take approx 2 weeks shortly after it settles) can i spend smsf funds to pay for accommodation close the the property and flights? My reading thus far tells me it could be a breach to stay in the unit, so I was thinking something down the road like a van park or motel.
No definitely not. This is because it is not the super fund getting accommodation but me. Therefore I am getting benefits that have nothing to do with retirement savings. If I want to go stay near my smsf property accommodation and travel are at my own expense
2 I am also interested in using smsf funds for flights but mostly concerned about accommodation cost as I might drive to fit more tools and the car is already salary packaged so the petrol is already gone cash flow wise in my mind and at least tax effective - so flights as a separate question - can they be done with smsf funds?
see above, no travel expenses cannot be incorporated into a total reno budget and paid by smsf
3 While I am there are other costs also able to be spent from smsf funds? (like food, reno supplies, tools etc) I am not looking to claim any salary, claim time or pay myself for this job (i am not a builder) but if this were possible then Im listening.
generally no. Food, no, same reason above as accommodation. Any specific reno items that can be paid by invoice direct from the fund (not my bank acc or my cc) are ok. He advised if purchase cheap kitchen from buntings, setting up a buntings trade account using ABN of superfund, so bills are direct and I am never a middle man in the transaction. This is because renos cannot be paid by borrowings. If I buy a sink and then the smsf pays me back, then the smsf had borrowings (to me) this disallows the reno rule re borrowings
4 When I visit it once every 1-2 yrs after this to inspect or conduct maintenance what are the rules around using smsf funds to do this?
Forgot to ask, maybe next time but travel rules will be the same I think
5 My current understanding and contacts in mortgage lending indicate St George 80% lend with corp trustee and offset is one of the best smsf loan products on the market - should I be considering any others for this property?
Still in the lead for me but NAB seem more flexible on the property type
My overarching goal is that I don't want to spend more (or any if possible) of my own private funds than required for this property and I am happy to buy well under my buffer zone (price bracket) to ensure adequate funds are available for the reno including travel then also leave a comfy buffer for servicing etc.
My conclusion is if I am going to buy a renovator in super, I am more likely to engage a contractor (or several) to just do the work, I can't see how its worth traveling, painting, installing things yourself when there is no ability to be repaid for any of these costs (even just actuals, was never looking at paying myself a wage anyway) so more likely to buy a set and forget type place, or else just find a building service to quote the whole job, or have a PM organise it all and bill the smsf directly.
Anyway, thought this was interesting feedback to get as my accountant is quite aggressive generally re what can be claimed but was pretty clear about his "no" answers when it came to smsf compliance. Good to know.