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  • Profile photo of krefterkrefter
    Member
    @krefter
    Join Date: 2010
    Post Count: 3
    January 14, 2012 - 7:40 am

    Alex,
    We could not get definite information. But rather than do nothing, we have gone ahead with the purchase of two houses in our SMSF LLC, but chose to own outright rather than the worry of loans in the SMSF. It means we own fewer houses, but less hassle. One in Florida, one in Memphis. Management is really good and we are watching rental money flow into US account. Now to start working with a US accountant to get the tax right. A lot of set up expenses tho, so to justify it – the figures have to be good and tax deductible and hope we can build up more houses. Will wait till we get the first tax return done first.

    You need to find people you can trust to manage and not worry too much about the really bad stories. Do enough research, and if possible, a trip overseas is essential to be sure about what you are doing.
    Good luck and enjoy the ride. It's better than looking at  interest in SMSF bank statements and doing nothing.
    Krefter

    Profile photo of krefterkrefter
    Member
    @krefter
    Join Date: 2010
    Post Count: 3
    August 10, 2011 - 10:17 pm

    Some really good points in these  last two comments. I have seen a lot of past comments from people who just can't make it there. We did  go and visit some cities recently and were reassured that a) the houses do exist and this is not a scam :) b) The most important item on the list is someone who you know and can trust to manage the house(s).

    We spent too much time on zillow and google, not really getting the right info (but google does show if there are other houses around it and any other features.)  when we visited, we focussed too much on whether the houses were what we wanted to live in – that is not the issue. If it is what tenants are happy to live in and in a neighborhood where they look after houses – all is good.

    We would like to buy more houses, but in a SMSF. Very difficult getting correct info on ATO compliance on whether a SMSF can borrow money overseas. We have formed a company and an LLC with the SMSF, but info is hazy. Non compliance will cut right across ALL SMSF investments not just the US ones. Anyone done this and feel comfortable?

    Not sure what the latest economic bump will do, but they will still need houses to live in and rent – more so if more owners lose them.  We will try for section 8 tenants where possible.

    good luck to all while we can do this.

    Profile photo of krefterkrefter
    Member
    @krefter
    Join Date: 2010
    Post Count: 3
    August 10, 2011 - 11:42 am

    I would like to know if you can borrow money in the US through a SMSF and be ATO compliant in Australia? I have been and met real estate buyers and bankers in Florida – but they cannot give me advice for Aust and this is so new for SMSF's that accountants over here (in Aus) are uncertain. I rang the ATO hotline and the consultant just read off the website and said he could not see where it said you can't.  Not quite enough reassurance for me. ATO is very unforgiving on non compliance!

    Who has done this and is sure about it?

    GK

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