The decision is out. Cash rate unchanged.

Re the above, your solicitor/conveyancer can give you clarity on whether they used an SMSF or not, and in fact whether there is a contract in place, or not.

Oh dear! So secret that even ticket holders cannot know the venue?

Great – well before you steam ahead and spend any money on this plan, you need to determine if indeed there is a suitable demand for this product, and if so, if there is a demand for it in this particular location. There is nothing to stop you utilising free media tools such as facebook and gumtree to determine the level of interest. You could also get in touch with caravan retailers, clubs and caravan parks to seek information on whether people are enquiring about storage options for their caravans. If it turns out to be a goer, there is also the advertising channel of caravan and camping shows, caravan-ing magazines etc,

Hi there

Hm that is a shame. Careful to have more than one tenant strategy next time I suppose.

Not knowing precisely where it is makes it tough to make appropriate suggestions (consider mentioning the name of the town in order to attract more relevant suggestions), but I wonder … if it is conveniently on the path from Brisbane to popular caravan destinations, maybe you could offer it as a caravan storage facility.

Lots of relevant points have already been raised.

As Redwood has mentioned, some folks have fallen prey to overpriced off the plan stock.

It is important to have some visibility on running costs of an SMSF, rather than dismissing the idea just because someone said to, without factual and numerical reasons provided.

Annual accounting fees of an SMSF, depend on the fee structure the accountant, might be $1,100 or $11,000 depending on how much mickey is being taken. Other annual fees from ASIC in a SMSF would amount to circa $300 in a SMSF that has one property only which is under mortgage.

If you take the example of a person who has say $100k in super. It is necessary for this balance either to rise, or to provide a reasonably consistent annual income when retirement day comes, or a combination of the two. Because these days, $100k would buy you around 3 years of living costs before you run out of cash.

Let’s pretend a person finds on retirement day that the $100k had tripled in value to $300k. That buys them around 9 years before the capital is chewed up. Or if you try to live exclusively off bank interest, you are staring down the barrel of trying to live for sub $5k per annum. Scary. In contrast, the person could look at the option of using the money to acquire a modest property in super, using an 80% loan. Let’s say this property is returning $350 per week in super today, that inflation does not exist, and that rents do not rise. $350 per week in rent, by the time a mortgage is paid off, is a gross rental return of $18,200, or an approximate net return of $13,286. Again, can you live off $13k per year? Unlikely. However this is a much bigger chunk of the amount a person requires per annum for cost of living than the prior example.

Figures are approximate, not guaranteed and all other such disclaimers. But hopefully this helps a few folks think about their super more logically then blindly doing or not doing something “because someone else told them to, or not to”

In this regard, it is interesting to note that a person can have more than one SMSF.

I’ve asked Richard to comment as he is very knowledgeable on the topic. No doubt he’ll jump on tomorrow and comment.

As a separate issue, if you are planning to buy a block of units in your SMSF (and I assume you mean an unstrata’d block), expect the LVR to be low if you will be needing a loan for it. Also remember you will not be able to strata title an unstrata’d block while there is a loan over the property.

re the SMSF, I will assume your smsf has a corporate trustee.

Land tax rates for companies and trustees are published on the tab with same name here:
https://www.osr.qld.gov.au/land-tax/about-land-tax/land-tax-rates.shtml

The land is not exempt unless the land qualifies under exemptions (eg if it is being used as an aged care facility).
https://www.osr.qld.gov.au/land-tax/exemp-reb-land-tax/index.shtml

Installation will generally be cheaper if the unit is going on an external wall. This is because on the inside side of the wall you have the split system itself, and the exterior unit can go on the other side of the same wall. As mentioned by blackhotel, if pipes/conduits have to be run from the interior unit, along walls to eventually meet a suitable outside location for the exterior unit, then install will be pricier. Also check that your install guy is also an electrician capable of putting the aircon switch in the meterbox. Otherwise you will be paying and install guy as well as an electrician.