Does anyone here have a SMSF? How do you go about doing it? Is it a difficult process to start? What is needed.
I would like to take my money into my own hands.***********************
Discount is King, and Free is grandaddy of all Kings!Fullout,
I would recommend you go see your accountant, he should know a lawyer who can establish a trust deed for your super fund and also brief you on the regulations of managing s super fund. For example a super fund can’t borrow money and gone are the days where your super fund buys your PPOR and rents it to you. There is also a number of opinions about on how much capital you need to start your own fund, some say $100,000 other $20,000. I started mine with about $25,000.
Hope this helps,
Best regards,
Gavin
Thanks guys!
hmm, Gavin & Michael you said about $30,000 is ok. Does that 30k need to be super-money, or can be my savings? or loans?
Can super be used for property investing, and investing in my own business?
I have just started working in mid 2002, so now my super is not too much. BUt i am happy to get out fast to take matters into my own hands, as Kiyosaki recommends
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Definitely some tricky tax issues involved that a good accountant can help with. The borrowing ban can make it a difficult prospect, and returns need to be quite good to cover your cost structure.
Its true a SMSF can’t borrow which normally discounts property as an investment (unless you have lots of cash in the fund.) One way around it is to set up a unit trust to do the investing a trust can borrow no problem, the super fund can then make regular contributions to the trust ie buy units. There are obviously costs involved but having a SMSF puts you in control of YOUR money. At the end of the day I’d rather live or die by my own sword than someoneelse’s.
Steve
I’ve got good news and bad news. 1st the good news “Your Success is in your hands!” Now the bad news “Your Sucess is in your hands!”
Hi All
Be careful with Self Managed Super Funds.
Steve suggested using a unit trust for the superfund to invest in, then the unit trust can borrow to fund investments.
This is not correct. New rules were introduced to stop superfunds doing this. Sure Steve may have a unit trust setup before the new rules, therefore they don not apply to him.
If you setup a unit trust now owned by a superfund, you are not allowed to gear up any investments within the trusts.
Super funds are very complicated, and suggest anyone interested to speak to a Chartered Accountant or CPA.
John
[email protected]Taxman, I was refering to a unit trust owned by a different entity than the super fund so it would be arms length. The super fund can invest in the unit trust as it would any other managed fund.
But your advice about checking with an accountant first is very important.Steve
I’ve got good news and bad news. 1st the good news “Your Success is in your hands!” Now the bad news “Your Sucess is in your hands!”
Also, you might like to try http://www.supereasy.com.au
However, they say it is complete, but don’t provide minute books and other paper work needs. But still worth a look.
Ok Steve, but if the entity in CONTROL of the unit trust is deemed to be a related party of a member of the fund, you will breach the rules.
I would not want a non related party in control of my unit trust.
Cheers
John
[email protected]John (Taxman) is right.
The rules changed a few years ago to stop a SMSF investing in a Unit Trust and then the Trust borrowing.
I started mine around 6 years ago and feel that for most people you would need a minimum of $75,000 in super to make it viable.
A Super fund cannot borrow or trade so avoid buying in super, renovating and then selling off for a profit more than say once or twice a year.
There is however nothing to stop you wrapping in Super (I have several wrapped properties in my super fund).
Just be careful to ensure that any investment decisions are well documentated as the Trustees are responsible and the fines for mismanagement are considerable.
Cheers Richard
[email protected]There is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
Richard,
Wouldn’t wrapping in your super fund produce a fairly low rate of return or around 5% or so as you would have to have enough funds to buy the house outright.
Best regards,
Gavin
Noting that the costs above suggest you need an income of at least $2000 to cover fees, surely even if you only had $10000 invested which earns 21% you come out in front. Which is still better than commercial funds which are negative, plus fees.
We started with $30000, and only made $3000 in 6 months, but will be making 30% return on our cash for this year, with a possibility of more. This easily covers costs, and keeps the fund building purely through earnings, let alone any contributions we decide to make.Cheers
MelI have many clients that I assist setting up SMSF and the yearly audits.
Set up $495 includes everthing.
Audits from $795
Also a lot of clients like to invest their super in our 2nd mortgages, which you can earn a return from 15%- 30%p/a.
Gavin
Not sure how you work out your rate of return but you are right you need the full amount of money in your super fund to cover the purchase price of the property and acquisition costs.
Cheers Richard
[email protected]There is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
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