Call Simon from Edgestone Developments on 0425 622 226, specialises in Eastern Suburbs of Melbourne, refer below for project portfolio

http://www.edgestonedevelopments.com.au/project_portfolio.html

Cheers, Ivan

My loans are cross – colleterlised on two investment properties. I just can't get my head around it (Redwood scratches head). I entered the loans over 5 years ago (or maybe and was not aware of x-collat, and now with more experience on loans, I have raised the question. My banker – who I trust has reassured me, however I just have not had time to look into them. 

I will have to untangle the mess – unfortunately i will have to part with my banker if I do, but the question is did he act in my best interests by entering me into the arrangement in the first place.

I get a headache thinking of x-collat and will get another broker to look over everything and provide a reccomendation.

There are a heap of threads on somersoft on the topic too…..

Cheers, Ivan

Hi Chris, some amazing advice from the other poster….

1000 sq metres…..outer east, i'm looking, so send me the details and I might buy it.

Subdivision – depends on council and ability to build depends on your personal situation – something that we need more information to advise on

Cheers, Ivan

Hi already taken,

There are a heap of threads on the forums covering SMSF Property and the 'minimum balance myth'.

SMSFs are not for everyone, however they provide choice, flexibility and control, all of which you cannot get with your industry fund.

So what is the minimum balance? it depends.

Generally speaking, with a $100k in super you can very easily purchase a property worth $350k, assuming a 80% LVR and a 20% deposit of between $70-75k, which leaves a cash buffer for you. 

Considerations:

1. combine your balance with your partner or trusted friend to increase your superannuation balance

2. Interest rates for SMSF a little higher, generally 5.6% can be achieved very easily

3. Seek advice before proceeding to determine the structure you need to borrow to invest in property (bare trust), and choose the BEST provider not the cheapest

4. refer (3)

Hope that helps!

Cheers, Ivan

Ha Rich, she will be seeing the same solicitor when the valuations don't come in at settlement – assuming OTP. Its insane. I'm off to SG and China Friday – wish me luck with the flight path.

Cheers, Ivan

Hi Crest/ Tony,

My firm charges $89 per month or $1,080 per year. The fees are fixed no matter what type of investments you have and includes Audit.

Its always better to go to a SMSF Specialist particularly with property investment in your fund. We are having more and more accountants outsource their SMSF service to Redwood for the 'specialist' tag and this is happily disclosed to their clients, particularly the Bare Trust Set up, which we specialise in and all the banks have vetted our legal docs.

Remember only a ASIC registered auditor can sign off on the audit report, which we are.

Hope that helps

Cheers, Ivan

Mikko, 

Re the $1500, is this for the set up of the SMSF and the Bare Trustee, or just the SMSF?

If it is for both, it is reasonable, if it just for the SMSF shop around.

Borrowing to invest in property is a great strategy to take control of your super and your retirement nest egg, you just need the right education and advice to get yourself up and running. 

70% of our clients invest in property, some get carried away and buy 2 properties and get overwelmed. Start with one, get you SMSF set up at the same time get your education around the SMSF and Limited Recource Structure (Bare Trust) and then find the property unless you have already.

You are in a fantastic position with $160k in super and remember there is no minimum balance, however, manay of my clients can very easily buy a $350k property to start with with $100k in super. That is, 20% up front deposit which you use your super balance plus 'acquisition costs' which includes stamp duty on the property (low for off the plan), SMSF set up costs and bare trust and legals  plus loan costs (i.e app fee and legal fees). With this example you should still have $15-20k in the bank as a cushion.

You can borrow up to 80% for residential and 70% for commercial. 

I have many war stories, however for another day, just ensure you receive the right advice as inexperienced brokers/ banks/ accountants can mess up your bare trust quickly and result in some headaches for yourself.

Ensurte you set up the SMSF with corporate trustee and the Bare Trust with Corporate Trustee for effective asset protection and improved LVR. 

Hope that helps.

Cheers Ivan

Richard, 

Interesting.

In your next moderator meeting (cough cough), please raise the ridiculous amount of spam coming through the gateway. I have only been here a few months, but its easy for the spammers to get in.

Interested in the 100% product if you are happy to share.

Cheers, Ivan

Catch is limited capital growth if any, I would never invest in one.

Cheers, Ivan

Hi Robert26, I/we am/are a SMSF guy and get every property firm Australia wide sending me email daily, however never heard of these guys, however vals not coming in is a huge issue in Mel and Syd, sorry to hear abt your experience, will be interested to hear from other posters?

Cheers, Ivan