Forum Replies Created
Wow……
I'm now comfortable that my original question has been answered and i'm confident that my $135k is more than enough to set up a SMSF to purchase property. I've now made a decision to do this. And im also reasonably comfortable with the fees i'm up for.
However im only partially comfortable about "Who" to go and see first to set this up? A lawyer? An Accountant? or Financial Advisor? If the answer is the Accountant, should i use my current accountant? I already have a family trust that has purchased one property and my current accountant knows my situation well. (sorry as im not sure if this is a silly question). Similar should i be using the same finance broker? or should i split up my lending?
Sorry for so many questions.
Additionally are there any groups or regular seminars in Perth that i can attend to learn more about all this stuff? Im an educator by trade and craving to learn more in order to set my family up for the future.
Mat
Thanks to all who have responded
After speaking to some friends over the weekend, they said they were scared off buying real estate with SMSF due to the fees involved and then the time taken to manage the fund.
Is there any advice to this? How much does it cost to set up a SMSF so that it can buy real estate?
Mat
Thanks Jamie and Richard – sounds like thats a smart way to go.
Cheers
I should also note that i dont have a PPOR so no use suggesting the surplus goes into that property. I am just renting atm.
I guess my goal is to keep properties and watch them grow in capital… At the same time I i'd like to see them as close to neaturally geared as possible so they can take care of themselves. Any cashflow will go back into the property itself or into investing more property.
Hence my original question, what to do with the $100k? Bring the negative geared ones up to neatural or buy another IP?
I earn $240k with my work so servicability is not a problem
Thanks to those who have replied. Im not really after advice but more along the lines of, what would you do?
Mat
Thanks for those that replied
I've decided to invest and keep my emotions out of my strategy. Some simple number crunching helped me to realise that. For those interested these are the sums i did when making my decision.. Hope they make sense
The table below compares two propeties. 1. is a hypothetical investment property. 2. is the block of land i fell in love with. Note: I have the cash flow to afford the block.
Investment Property Buying Land Loan amount $ 305,000.00 $ 305,000.00 Monthly Repayments $ 1,779.19 $ 2,029.17 Rental Income @ 5% $ 1,270.00 $ 0 Personal Contribution $ 509.19 $ 2,029.17 Contribution over 12 months $ 6,110.28 $ 24,350.04 Savings $ 18,239.76 $ 0 Approx Tax Benefit $ 6,000.00 $ 0 Overall Benefit $ 24,239.76 $ 3,000.00 For this to actually be a saving I need to put it away in a bank account somewhere. And dont spend it on toys. Otherwise we will have nothing to show for it and it would have been better off buying a block of land
This is how much I would have paid off the loan principal by the end of 12 months
Given the figues below no profit is made on the sale of the rear dwelling – Yes or No?
Purchase Price = $500k
Subdivision and Building costs = $250k
TOTAL OUTLAY = $750kSale of rear dwelling = $500k
Left with Debt of = $250k
Or does the house and land have to be revalued after subdivision? And profit / loss worked out on those figures? If so who does the evaluation?
Particuarly interested to hear from those in Frankston that have subdivided.
I just did a quick flyover using Nearmap and there doesnt seem to be many subdivided blocks at all. However almost every advert i see for property in Frankston over 600m2 says STCA potential. What is the dis connect here?
Just wondering what peoples opinion of Frankston is now – 5 years since the previous postings…
