Can I transfer my investment properties to my SMSF to free up borrowing power?

W

welshduna718

New Member
I've got two residential investment properties that I'm hoping to sell or transfer to my SMSF. From the research I've done, it looks like this is pretty much impossible. Maybe someone here knows a way around it?

Both apartments are on the Gold Coast, and I live there in a rental.

Single, 47M, earning about $120k a year, and I want to buy an owner-occupier place in the next 12 months. But with those two properties in my name, my borrowing power is maxed out.

I'd love some advice or a referral from someone who's been through something similar or knows the ropes.
 
Great question and you’re spot on with your research. Residential property generally can’t be moved into an SMSF (it’s an in house asset under SIS rules), and you can’t buy it from a related party either. No sneaky workaround within the rules, unfortunately.

That said, there are some totally legit paths worth looking into:

Sell the properties take the cash and boost your super (via concessional or non concessional contributions). That could free up borrowing power for your PPOR purchase.

Debt reccyling / restructure depending on how your loans are set up, you might be able to lower your exposure without having to sell right away.

SMSF buys a different property your SMSF can absolutely grab commercial property or new residential property (just not from you). That could fit into a bigger plan.

Check your borrowing capacity on a $120k income with two investment properties, a good broker might find more room than you’d expect, especially if the rental income is being assessed nicely.

The real move here is getting a solid, coordinated plan across tax, super, and lending before making any moves selling the wrong way or at the wrong time could cost you big in CGT.

Happy to talk through your situation just DM me.
 
no u cant transfer to smsf

what u could look at is what is ur capacity to buy an additional investment property then later move into it as ur forever home

this way either u got capacity or maybe u only need to sell one

also look seriously at buying property in ur smsf now cuz it's a very good time based on ur age n expected solid balance
 
What EQUITY is available in our investment properties.

Another way to do it would be sell down both properties, buy PPOR with no personal debt, pull equity against it to buy 2x new investment properties.

Or, 1 and have poor with no debt (personal debt) if that works. Just CONSOLIDATE and go again.
 
There are some pretty niche ways to transfer it, but honestly, I really doubt they'd apply here.

The real question is, if you've maxed out your borrowing, you're probably carrying too much in loan repayments for the income you have basically, you're losing money and just co vering the gap.

If that's not the case, you could shift them into trusts or something similar to cash out the equity. But you'd need to look at your whole situation to make that work. Paying capital gains tax and stamp duty would really suck if the plan isn't solid.
 
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