Hi all,
Can somone please advise how people use their super to build a portfolio??
Thanks
Hi
It is not difficult. You make contributions into Super and then in turn (On the basis that you have established a SMSF) purchase property, shares etc.
Remember that you are unable to borrow in your Super name so gearing is almost impossible however an investment in an Instalment Warrant is acceptable which in turn involves an element of deferred payment.
Tax in a Super Fund is paid at 15% and 10% on Capital Gains where the asset has been held for a period of 12 months and 1 day so does have its advantages.
Cheers
Richard Taylor
Residential & Commercial Finance Broker. Licensed Financial Planner.
Ph: 07 3720 1888
[email protected]
Ph: 07-3720 1888Richard Taylor | Australia's leading private lender
What people did was be a personal trustee of the fund.
The bank therefore is ignorant that the superfund is providing the deposit, and is borrowing on the title, and will lend.
It is illegal , but went on big time during the boom. Once heard that the biggest creator of super funds in 2003 were RE agents.
As GMH mentions It is illegal , but went on big time during the boom.
The penalties for the Trustees are severe and include crimal charges from the ATO so i don’t recommend it.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner.
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
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