Hi all,
We have been toying with the idea of a holiday rental property using SMSF capital. The rationale was two-fold, capital gain (since super is long term anyway) and life style choice (holiday rental), I spoke to my accountant; the following comments were given:
1. For borrowing using SMSF, needs to set-up "bare trust" I don't fully understand it yet, set-up costs are expensive, high borrowing cost ie. interest is higher than normal, requires at least 50% equity contribution to make it worthwhile.
2. We would rent it out as holiday rental through normal process during holiday seasons. However, we can not legally use the house when it is not occupied. To quote and unquote my accountant; "don't even think about it!" was the comment.
I thought I would post this topic in the hope that some of you may have different opinions or are actually living it - LEGALLY.
Looking forward to the responses!
PNS
We have been toying with the idea of a holiday rental property using SMSF capital. The rationale was two-fold, capital gain (since super is long term anyway) and life style choice (holiday rental), I spoke to my accountant; the following comments were given:
1. For borrowing using SMSF, needs to set-up "bare trust" I don't fully understand it yet, set-up costs are expensive, high borrowing cost ie. interest is higher than normal, requires at least 50% equity contribution to make it worthwhile.
2. We would rent it out as holiday rental through normal process during holiday seasons. However, we can not legally use the house when it is not occupied. To quote and unquote my accountant; "don't even think about it!" was the comment.
I thought I would post this topic in the hope that some of you may have different opinions or are actually living it - LEGALLY.
Looking forward to the responses!
PNS
