Sounds like you have enough in super to use a SMSF and a limited recourse loan to purchase a property in your SMSF, however your SMSF will not be able to acquire a residential property that you currently own.If you are forced to sell your IP there is nothing stopping you purchasing a different property with a SMSF to keep your property portfolio…[Read more]

Previous comments by Richard and Scott are correct.For more information on this strategy you can download a free ebook here:http://buypropertywithsuper.net.au/Seems something got lost in translation from your 'source'. It is a very good strategy for certain people.

Hi R F II have responded to your post over on Invested: http://www.invested.com.au/4/best-way-start-out-trusts-38274/Terry is on the right track.You can distribute up to $3,333 to minors under 18 (including your children or even nieces / nephews etc)If you are in VIC you can probably transfer the property into a trust with only nominal stamp duty…[Read more]

I will not comment whether such an arrangement would be considered a 'scheme' – but a SMSF cannot give financial assistance to a member or a relative of a member – either directly or indirectly.The ATO has released a Tax Payer Alert on this subject (in regards to financial assistance via an 'unrelated'…[Read more]

Hi ASB,To enable your SMSF to purchase a property from a member, it must be considered 'business real property' – meaning it has to satisfy the business use test which is: "used wholly and exclusively in one or more businesses"SMSF Ruling 2009/1 deals with the definition of 'business real property' in more detail.The following example (#13 of 37…[Read more]

Maybe look into whether the property (or their respective shares in the property) can be put into a testamentary (a.k.a. bloodline) trust?Obviously legal advice would be necessary to see whether it is possible, and this would also provide extremely good asset protection, taxation benefits and flexibility.

Hi guys,Just a quick update on this issue.In September the ATO discussed this issue (and numerous other SMSF borrowing issues) with superannuation industry representatives at their NTLG superannuation technical sub-group meeting.I have posted an article about this issue in more detail on my…[Read more]

Hey TyronJust wondering if Washington Brown finds it difficult to differentiate themselves from other quantity surveyors? I mean – you all basically produce reports which are going to have the same information and same benefits (deductions) for the property investor – so how do you sell your service?This is your opportunity to enlighten us and…[Read more]

Hi Mike,If you have read anything from Robert Kiyosaki you should have learned the following:- buy assets- that produce income- focus on cash flow- structure your investments correctly to reduce tax and protect your assetsThe reason 'astute' property investors probably don't pay much tax is because a lot of them are so astute that they have geared…[Read more]

I have read three or four of Robert Kiyosaki's books and they contain some fantastic ideas.The books really struck a chord with some of my core beliefs.  By reading the books it gave me the kick in the butt to change my life – I even moved to a different country and totally changed the direction of my life.I am also a little cynical that he has…[Read more]

Good to know you are grateful Grateful!I have read the Explanatory Memorandum that came out with the 07/07/10 changes and my interpretation is Yes – it can be done provided any improvement / renovations are NOT so significant that a replacement asset is created.The key issue as I read it is:Circumstances not permitting a replacement asset…[Read more]

Hi Daniel,I have recently started using Depreciator for my clients and I have been impressed by the service and how easy it is to organise. I have also had good feedback from my clients. Prices are $500 to $800

Hi Emmy,I have recently started using Depreciator for my clients and I have been impressed by the service and how easy it is to organise.I have also had good feedback from my clients.Prices are $500 to $800

Hi TimSorry for the delayed responseYou should only need one Pty Ltd security trustee company for multiple properties as it can act as the trustee for multiple custodian / property trusts.I hope this clarifies.

That is great news Number 8 Good luck with everything – I hope everything runs smoothly with the bank.Due to the typically higher yields, commercial properties work really well when purchased by a SMSF using a limited recourse loan.  The banks typically will only lend up to 65% on a commercial property when purchased by a super fund, and based on…[Read more]

Hi Kalkat,I think Richard hit the nail on the head.You time and money would be better spent educating yourself on how you can use your super (via a SMSF) to purchase property.  It seems complex initially, however once you get your head around it it is a fantastic strategy.I have just been reading from the Capital 360 website…[Read more]

Hey Tim,Yes – that is correct – bare trust, property trust, debt trust, custodian trust all names for the same thing when talking about SMSF borrowing / limited recourse loans.You need another company (with it's own ACN – not ABN) in addition to the trustee company of the SMSF for most lenders.The following table is a quick reference to what the…[Read more]

Hey again tdorgan,Another thing I previously didn't mention was that with SMSF limited recourse loan purchases (previously known as instalment warrants) – you can only have one property per trust.  This was clarified by the government in their update to the SMSF borrowing rules that came into effect on the 7th of July 2010.This means one property…[Read more]

lifesjourney wrote:
Richard,I Have the July API didnt see you in it. CheersMatt

Try the August issue – pages 44 to 48Worth a read.  You will see a pattern with all the guys featured – I will give you a clue – starts with 'cash' and ends with 'flow'This is the first time I have actually bought API magazine – it seemed a good read – I just had…[Read more]