I've read a few post about SMSF and have been trying to get mine and my partners SM for a while, basically when the crash happen my partners was in high risk and he lost over 20k in the first year, due to the report only being sent out yearly we didnt know he was in High risk and losing money, it is now switched to low risk but in recent years we have started buying up houses and are wanting to have a few nice IP under our belt by retirement (currently we are in our early 20's) all our investments have been positive gearing even our family home will be if we rent it out (ha like that will happen
)anyway i've recently gone to a few banks inquiring about using the super to invest but they keep saying the minimum we need is 80K other wise we cant borrow on it even though we still have a good 40 – 50 years of work left in us
and the house prices we look at are around the 150K mark currently we have between us about 20-30K in super, does anyone know a way around this 80K limit?i've been told by a friend (who probably isnt the most reliable source) that we can have 4 people in a SMSF and if each have 20K than the banks should lend us the money for an investment
im also wanting to know are you taxed heavily if you keep the SMSF IP as a rental even when you retire, for example say you buy a block of 8 units and they bring in total 1400 a week would you be taxed high on this?
this posted more than once (sorry) not sure how to delete the others
Hi Kerryn
Firstly welcome to the forum and I hope you enjoy your time with us.
I will only answer 1 of your 3 posts lol
Firstly $80K is not the minimum amount you need to purchase a property inside your SMSF although you would be suprised how many branch lenders would have no idea how to a deal inside a SMSF as it is a specialised Credit area with most lenders and many treat it as a commercial application.
In regards to security location some lenders do have post code restrictions (others by the way do not) <edit>.
In answer to your other questions:
1) Yes a SMSF can be started with a maximum of 4 members all of which can be unrelated. If each party put in 20K there is no guarantee a lender would advance funds as it is not quite that simple. Serviceability criteria when buying in a SMSF is totally different to normal residential / commercial lending.
2) Any asset that generates an income when you are in Pension phase is Tax free under current legislation. This also goes for any asset that is disposed of. In saying this before you rush out and buy a block of 8 units on 1 Title there is a few other considerations.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
hey Qlds007 thanks for your advice, would you recommend a company or professional i should look at talking with?
For what part of the advice ?
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
)
and the house prices we look at are around the 150K mark currently we have between us about 20-30K in super, does anyone know a way around this 80K limit?
You must be logged in to reply to this topic. If you don't have an account, you can register here.
