Question: We have an investment property outside of our SMSF. We still have a mortgage on it. Can you please explain the options available to transfer the property into our SMSF? We can pay off the balance on the loan from funds outside of super. Can we withdraw a lump sum from our SMSF to pay off the mortgage as our fund is in pension mode? Would it create a tax liability?
Answer (By Paul Rickard): You can’t transfer your investment property to your SMSF. There are no exceptions for residential property.
If your SMSF Trust deed allows it, you can usually commute an account based pension and withdraw it as a lump sum. The lump sum can then be used to pay off the mortgage.
Question 2: Do you think now is the time to be fully invested? If not, what percentage would you recommend? I mainly look at dividends with some capital appreciation.
Answer 2 (By Paul Rickard): Peter and I feel that the domestic share market is heading towards 6000 – a position we have held now for more than a couple of years, based on the view that the “easy money” policy of the Central Banks would lead to higher asset prices.
That said, I have never been fully invested in shares – I invest across all the asset classes – and as we move higher, my inclination will be to take some money off the table.
Unfortunately, I cannot legally even attempt to answer your question because I have no insight into your financial objectives, investment horizon, particular needs or risk appetite. An adviser may be able to help you in this regard.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.
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