Hello,
Been a long time since I last posted here. Been busy working trying to get my business off the ground.
I have spent the last few hours catching up with all the latest info on HDTs and SMSFs etc... and need to clarify a few things.
One is... is it possible for a SMSF that has $50K in cash to buy units into a HDT, so that the HDT can use that money as a deposit to buy a property? (Obviously the property will be mortgaged. The HDT will be the morgagee.)
If we extend this a bit further and instead of the HDT being the morgagee, I am the mortgagee and use the funds to buy units in the HDT so that it can buy the property outright. Would this be allowed according to SMSF laws?
I have no problems with transferring all the income to the SMSF nor put a nice capital gain on the redemption of the units. (In fact that is would I would like to achieve, since CGT is a lot lower for SMSFs.)
Thanks!
Been a long time since I last posted here. Been busy working trying to get my business off the ground.
I have spent the last few hours catching up with all the latest info on HDTs and SMSFs etc... and need to clarify a few things.
One is... is it possible for a SMSF that has $50K in cash to buy units into a HDT, so that the HDT can use that money as a deposit to buy a property? (Obviously the property will be mortgaged. The HDT will be the morgagee.)
If we extend this a bit further and instead of the HDT being the morgagee, I am the mortgagee and use the funds to buy units in the HDT so that it can buy the property outright. Would this be allowed according to SMSF laws?
I have no problems with transferring all the income to the SMSF nor put a nice capital gain on the redemption of the units. (In fact that is would I would like to achieve, since CGT is a lot lower for SMSFs.)
Thanks!