Hi Wender,

There are free seminars on this; http://moneytree.com.au/view/seminar-property-through-super?seminarId=1

I'd suggest speaking to a bunch of providers that have knowledge in this area, as well as people who have done this with their super, before committing to anything.   Also have a chat to a couple of banks about how they lend to SMSFs for property investment.

Where are you located, by the way?

Hi

Here is another acronym… SMSF (self managed super fund). You can open your own super fund, transfer your existing super into it, and use it to buy property

I'd be immediately taking photos of this dodginess, and then establishing what to do.  Try and get identifying features in the background of the pics (eg if the neighbouring property is in the background, it is reasonable to accept that the photo is indeed of your property and not some random building site somewhere).

I think a question a lot of people have in their minds is: should I buy every property in a trust…. even if I end up with say, only 3 properties?  Or should the first couple be in own name and then go into the world of trusts if planning to go larger?

Seven Hills, Blacktown, Quakers Hill, St Marys, Nowra

Here are a few to jog your memory.  The precise wording that goes on the actual contract of sale should be discussed with your solicitor.  Be cautious about agreeing to secure finance within less than 21 days.  It is a process that seems to need about 21 days.  Also be very sure to specify HOW MUCH finance you should receive as a bare minimum, and better still, with which bank.  Don't say just "subject to finance".  God help you if you manage to secure only $100 finance on a place.  You'd then have satisfied the subject to finance clause and have to stump up the rest of the cash yourself!

These are examples – you could of course change the number of days settlement you are offering etc.

Subject to:

1. Results of building and pest inspection results that are satisfactory to the buyer within 21 days of the date of sale
2. That the buyer is able to secure insurance for the property that is satisfactory to the buyer within 21 days of the date of sale
3. That the buyer is able to secure residential investment property finance of a minimum of 80% (ie $300,000) of the sale figure with the Commonwealth Bank of Australia within 21 days of the date of sale
4. The buyer is entitled to reasonable access for the purpose of tradesmen measuring and quoting for jobs prior to settlement
5. The buyer is entitled to access of 30mins per week in the 3 weeks prior to settlement for the purpose of showing the property to prospective tennants
6. Settlement shall be 90 days (<<insert a convenient precise date of settlement>>)

7.
Any renewed or new lease made on the property between date of sale and date of settlement must be for no less than $350 per week and for a period of not greater than 12 months
or
Buyer is entitled to vacant possession

8. This offer expires at 5pm today (<<Insert date>>)

Hate to say so, but it does depend. 

re: Developing; It depends on how much finance you could get to finance development (as it'll be slightly trickier than just getting a loan for a dwelling that already exists).  So your income that will service the loan will come into play etc etc.  It also depends how much time you have to put into this, and whether you'd actually make enough money for it to be worth the bother. 

The other thing you'll want to pay a lot of attention to right up front is the buying structure.  eg whether to buy the property/s in your name, inside a trust, inside a company, or inside a Self Managed Super Fund.  This is a whole other topic that will require you to be across the pros and cons of each.  For instance, in a super fund, you will be paying for property with pre-taxed dollars and enjoying great asset protection, but you might find you can't leverage one property against another if you decide to buy more than one property through super.  A trust might provide you with the ability to distribute profits to whomever depending on the various earnings levels of family members in a given year, but you might have to forego the tax-free threshold for land tax.  Buying in your name will allow you to negative gear against your income, but then your assets are at risk if you get sued.  As you can see, quite a topic….

Thanks boys.  All very valid points.  I had thought that I would keep this one in my name in order to write the losses off against my income, and purchase any additional properties through trusts. 

Hi Paul, just noticed your reference to "preferably brick and tile".  Just interested to hear about why that is your preference?

Banks don't seem to like property of less than 50sqm, or student accommodation.  Setting that aside, wouldn't it be best to first clear your credit card debt before taking on even more debt?