(-0_0-)

Couple of things to bear in mind with that strategy.

1) You are unable to purchase a property in your Super Fund from a related party – You.
2) If if it was not you but a 3rd party stamp duty would be payable.
3) Your Super Fund is not able to borrow to fund the purchase so you need to have sufficient monies in the fund to pay cash for it.
4) Super Funds normally pay tax at 15% unless the Superanuation Surchage applies. So treated slightly more favourable than a Pty Lty structure but less flexible.
5) Super Funds are not able to carry on a business so you can’t buy and sell as you would if you were trading property or renovating privately.
6)7)& Well i could go on.
Simple answer is beware as the Trustees are liable for breaching the Superanuation Act and the penalties are not light these days.

Cheers Richard
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http://www.fhog.com.au

There is no such thing as a problem.
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Hi Uncle

I still own several properties in the SE of England after emigrating 12 years ago.

I think one of the biggest problems is the level of debt you are confortable with. Remember (if you had forgotten already) that you are borrowing in pounds and not dollars and you don’t get much for your money over there.

The other thing to bear in mind is that the Mortgage Brokering industry is a lot bigger over in the UK than it is in Oz. There are many institutions that offer 100% loans without Post Code restrictions so people you rent do it because they want to and not because they can’t get finance.

Anyway good luck and enjoy your travelling.
Its a hell of a place to live.

Cheers Richard
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http://www.fhog.com.au

There is no such thing as a problem.
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Craig

When setting up your DIY Super Fund why not consider wrapping instead of just buying IP’s.

Combination of growth and cashflow. I have done several deals in Super as part of my overall investment strategy.

Cheers Richard
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http://www.fhog.com.au

There is no such thing as a problem.
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I agree with Steve if you are using the 11 second rule as a guide to purchasing your next investment they are certainly out there.

Cheers Richard
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http://www.fhog.com.au

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Westan

The other point is the 1 Year and 1 day rule.

Might seem petty but I assure you the ATO will not think so. Most people believe they only need hold the proprety for a year and we have seen to many sales end in tears that way.

Cheers Richard
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Mark

Concept sounds good but just make sure depending on which State you are in you have the correct license to do so.

You would hate to fall fowl of the Office of Fair Trading just for a few dollars.

Cheers Richard
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http://www.fhog.com.au

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Kristine

If you would like to email me some quick figures happy to give you a second opinion.

Cheers Richard
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http://www.fhog.com.au

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middler

Whilst i am sure that Bill’s comments are well meanting just bear in mind 2 things:

1) In Qld it is illegal for an Agent to take more then REIQ commission by way of a bonus or incentive payment.
2) We don’t actually have an exchange of contracts in Qld.

Don’t be put off by the poor performance of your property. Bill makes a good point most of the properties on the GC I see across my desk have been sold by marketeers not bought by investors (There is a difference).

Perhaps, next time consider a freehold standing house with good positive cash flow. Hope the weather in England is not too cold just think of your unit on the sand and in the sun.

Cheers Richard
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http://www.fhog.com.au

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Jason

There is nothing to stop your parents renting their home and treating the property as an IP. Just bear in mind when they only have a loan of $30K the amount of interest deductions will be limited.

Certainly they make obtain some building write off or depreciation depending on age but I guess they have to way all that up against the potential CGT they will pay if the ever sell it (calculated on the value when they moved out).

The other thing they have to consider is the interest costs they incur for the new construction are not tax deductible as it is a PPOR.

May want to consider selling the property using the cash to pay for the building and then use the equity to invest in +cash flow properties.

Cheers Richard
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http://www.fhog.com.au

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Shanebal

Where are you based in the big State of ours?

Cheers Richard
[email protected]
http://www.fhog.com.au

There is no such thing as a problem.
Just a solution waiting to be found