I want to self manage my fund so I can use this to build a property portfolio. I have information on this yet am a little confused regarding the borrowing against the superfund to start the process.
What is it that confuses you?
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Qlds007 wrote:What is it that confuses you?Cheers
Yours in Finance
Richard, It is being able to utilise the funds I have in super. My super is my nest egg and have little for anything else in savings . So I want to leverage off the super to buy property. Getting started is the hard part.
I have the idea of being able buy multiple properties for positive cash returns by splitting super into investments that return a rental income.
basically paying for themselves with a positive cash flow to use for more investing.
The confusion is about going about it.Hi Julian, basically the process of buying property in a SMSF is similar to buying as an individual. The SMSF is basically the entity, and it chooses the property it wishes to buy in a normal fashion. The loan approval is obtained through the SMSF entity. You would engage the services of a conveyancing solicitor or lawyer as per usual, and the purchase must be in the name of the Trustee. The SMSF pays the deposit, and associated property purchase costs i.e. legals, lender costs, and stamp duty (now called transfer duty) as per usual.
On completion of the purchase the Property Trustee mortgages the property to the lender. SMSF then manages the asset in the same way as you would with any other real estate investment. Hope this helps, if you require further assistance please feel free to shoot me an email.
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