My husband and I were thinking of placing out super $$ into a “self managed super fund” and using some to invest in proeprty on behalf of the fund. Obviously we will speak to an accountant/super specialist to get the full facts but my initial enquiries indicate that it is possible. Anyone done this on behalf of their own self managed super fund?
Have done this myself over last 12 mths, and report that instead of being charged $3k to lose us $7k, I have just made a nice profit of $44k on a $76k beach block. Go for it……..[
][8D]Can it be done if your super is not enough for the whole property or even just enough for the deposit say 20 to 30%.
can we lend money to fund the rest?
I believe you’ll find that super funds aren’t allowed to borrow money.
Matduqua
Sometime ago someone (I can’t recall who) did tell me that it is possible to do so. I am not sure of the technicalities, so it is best to ask an expert in this area.
Cheers
Oscar
Thanks for the replies. Will definately be checking out the facts of what we can and can’t do.
Thanks again and CheersYou definitely cannot borrow in your super fund, that is one reason they are so slow to grow, no leverage.
I have brought 2 carparks in StKilda, paid cash and because they are on a commercial lease, no outgoings payable, I get a net monthly return of 7% wich increases by 3% annually. No problems at all, I don’t have to monitor it like shares or worry about repairs, my income appears in the account every month.
The other option I am now looking at, is listed property trusts invested in blue chip properties, again this should be hassle free and can be done with small sums.
I have formed an investment company, this is allowed to gear, each property has its own trust.
It is separate from super.
Super has a lot of conditions attached you have to be aware of what can and can’t be done in super. The management fees are another issue and the surcharge I am liable for.
I do not see my super as being anywhere near enough to fund my retirement.
I have been putting into super for many years now.I set a SMSF up recently. I bought a tape and booklet about costing me $59 from the SMSF Association. The regestering of the deed in the ACT cost me $20 (it’s free in NSW, apparently).
It is better to create your fund with a husband or wife as they can put their money in also and you must have two memebers in the fund or you will be forced to use a “corporate trustee”
I got the trust deed off the net and tailored it. (I am a solicitor but don’t practice as one so it barely helped…I wasn’t trained in this area of the law). I then bought the relevant legislation (the Superannaution Industry (Supervision) Act but you can access it for free on http://www.austlii.edu.au
The trust deed is pretty straightforward and so long as you comply with a few criteria and make sure they are written into the deed your fine. The ATO site on SMSF was the most helpful thing i used.
Total cost less than $100…….
some firms cahrge you thousands.However, be aware that it will cost you about $1200 per annum to have it audited….so you should be earning a reasonable amount to make this worthwhile. Prperty is a good vehicle to ensure this currently.
I’ve now “liberated” about $62K from those self-serving losers (the superfunds) !!! and can buy a small property in a country town and get about $80-$100 per week instead of the money going backwards.
Have a go, it’s easy
Savanna
Good on you, and its happening more and more.
I keep excellent records via Quicken software, my accountant neatens it up and because its very simple, the audit doesn’t cost that much.
When we didn’t have good software, the compliance was a nightmare, I have learnt how to keep records now with everything and seing my accountant is no longer an ordeal.
What’s more, you are totally in control, if you stuff up, you are responsible, I have to acknowledge, I didn’t know what I was doing to start with.
I also have a problem with the fees charged by funds and advisers.Wow Savanna, thanks for the great post. Hubby said he thought it would cost “an arm and a leg” to set up, but you have just kiboshed that. Will definately look at the links you suggested also. Thanks again, Cheers
quote:
I have formed an investment company, this is allowed to gear, each property has its own trust.Hi Regina,
I have a few questions regarding this as I am planning on starting my own investment company ASAP.
1. Has your lender that you use to buy properties with your company, mentioned to you at what point of gearing they will max out your lending capacity?
2. Does this depend on the amount of positive cashflow generated, LVR etc?
3. With each property having its own trust, do you mean that each property is bought by ABC Company for XYZ trust, ABC Company for GHI Trust, etc.?
4. What are the benefits of having each property in it’s own trust as opposed to all properties in the one trust?I hope all this is clear to understand [
]Cheers,
Matt.
Hi Matt,
We usually put in 20% of deposit and we have to act as garantors for the company.
The properties are cashflow negative/neutral and positive. Some we have brought for subdivision and build another house in the backyard(capital gain)
Some we brought because they pay for themselves and maybe one of the other properties.
The company manages each trust, most of the properties have their own trust. The trust is for assett protection and as I understand, no landtax liability that way.
4. Assett protection, very hard to get at more then one assett (if each in a separate trust), eg if the tenant sues you for tripping over the carpet. Advice by a good solicitor, who is very much an investor/multiple property owner himself.
Cost per trust $500, set up company approx. $1200. Once everything is in place, I keep the books on my quicken software, like any other property. My accountant will the work out the tax issues.
I hope this helps.
ReginaHi Regina,
Thanks for the reply. It has cleared a couple of issues for me.
Cheers,
Matt.
][8D]
]The topic ‘Superannuation & Property Investment’ is closed to new replies.
