SMSF – Getting your hands on the cash
A common question raised is: can I access the cash in my super fund? The common response is: not until your old and probably grey and disinterested in making money.
But we've been thinking and there are a few alternatives, here's one...
Lets assume you are in business and you want to acquire a commercial property to operate from. You have done the sums, discussed with your advisor and are satisfied it makes sense to buy vs lease, particularly, in this low interest environment. The following is within the rules of the legislation (SIS Act):
The SMSF loans cash to the Unit Trust or acquire units in the Unit Trust. The Unit Trust could borrow additional funds from the bank to acquire the property if needed. Naturally, there are rules to follow, one of which is the SMSF cannot control the Unit Trust. However, this structure may be more flexible and simpler to finance than the limited recourse borrowing arrangements.
The above could be altered to suit a few different scenarios (more on this in the future).
As always, this may not apply or be suited to your situation, please ensure you seek advice from your advisor before executing, to ensure it is right for you.