[nitrodropsMember@nitrodropsJoin Date: 2009Post Count: 132]

May 3, 2010 - 2:23 am

Qlds007 wrote:

Nitro

1) is doable but 2) isnt and would mean the fund would have to liquidate the assets and roll the fund back to a retail fund.

Arguement being that if the Trustees are not in town how can they be performing the job of managing and assessing the Funds assets.

Thnx Richard,  i will try to explore more.

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April 30, 2010 - 8:19 am

Qlds007 wrote:

Sorry to say if you are moving overseas then the Fund will be non complying as the Trustee will not a Resident.

Hi Richard,

My initial idea is

1.) set up a SMSF when myself and my missus are still working, use the SMSF to buy an IP before relocating.

now

2.) will explore if we can withdraw the Super if we relocate. If can withdraw, will use it to purchase an IP also.

Cheers
Nit

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April 30, 2010 - 1:46 am

maree_bradross wrote:

AAQ – would you be able to share the purchase price of the property that you were able to use the $100k in your super to buy?

Nitrodrops – if your relocating overseas I think you can withdraw your super? Might be worth investigating

Hi Maree,

Didnt know i am able to withdraw my Super. Can you direct me to some URLs? i will try google on ATO.
Relocating to Asia for work.

Cheers
Nit

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April 30, 2010 - 1:44 am

AAQ wrote:

Hi Nitrodrops;

we just did it, rolled mine and my wifes super into our own SMSF and bought a property. Not sure I would do it again as its is painful paperwork wise but we learnt alot.  We had 100k combined and that was only just enough to get a conforming loan as banks requireup to 28% deposit plus closing costs so deposit was 75K closing costs another 20K- house puchase price 270k and it still requires input from super fund as rents dont cover repayments. Also only a few banks have conforming loans- we couldn't go with our regular bank as they didn't have a conforming product. 
The gamble is- is the house in 30 yrs going to be worth more than 100k would be if placed in term deposit at 5% for 30 years with additional input (ie greater than 472K).
We picked a good corner site with two street access so in future we may be able to demo and put up a duplex.
But a good accountant is essential!

Hi AAQ,

Can you share with me

1.) costs of setting up a SMSF
2.) how much is your annual ongoing costs to manage your SMSF

[nitrodropsMember@nitrodropsJoin Date: 2009Post Count: 132]

April 29, 2010 - 12:20 am

Dan42 wrote:

nitrodrops wrote:

Thnx Dan,

One question, cant i use cash to top up the 70%-80% LVR?

Cheers
Nit

Yes, you can contribute cash to the superfund, provided it doesn't exceed the prescribed limits.

Thnx Dan, will look into the prescribed limits.

Cheers
Nit

[nitrodropsMember@nitrodropsJoin Date: 2009Post Count: 132]

April 28, 2010 - 3:33 am

Dan42 wrote:

Hi Nit,

I personally wouldn't open an SMSF with less than $150,000. At that rate of funds, your fees would be about 1% of your SMSF assets.

The other factor, when borrowing for property in an SMSF, with $40,000 and a 70% LVR, you could only afford to pay $133,333 for a property.

Thnx Dan,

One question, cant i use cash to top up the 70%-80% LVR?

Cheers
Nit

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April 28, 2010 - 12:16 am

property779 wrote:

If you are needing to ask what 'DA Approval' means, I would suggest you are not ready to buy yet – spend some money on your education, rather than loose many THOUSANDS by making a poor purchase this early in your career – there are groups that meet in Brisbane that you can join also – I wish I had started much earlier than i did; but also very pleased that I educated myself FIRST!!

Thnx mate, yes i am still a newbie, trying to learn from the knowledgables from this forum.
Agreed on your comments.

Cheers
Nit

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April 28, 2010 - 12:09 am

Qlds007 wrote:

Hi Nit

Yes you can combine both you and your partners Super into the single SMSF as long as you are both Trustees and is something we set up for clients regularly as a  Fin Planner.

Remember running your SMSF there are certain fixed costs such as Accountancy, Audit and ASIC Annual return fees and Bank fees.

These will relate to a higher percentage portion when you only have a less than say $75,000 than they would if you had $750,000 in  the fund.

All boils down to the aspect of choice and whether you believe you can outperform a retail fund. Not difficult in the current climate.

Hi Richard,

Thnx for your reply. Our combined Super is ~$40k, do you reckon it is worth making it into a SMSF and invest in property? Both myself and missus are relocating overseas next year, so there will be any more super contribution. Any differences will be via through cash top up for mortage loan.

The thing i like about using SMSF to invest in properties, there is less CGT on our IP purchased via SMSF, if we decide to sell it when we are old.

Paying $1000 – $1500 annually is like paying body corporates

Cheers
Nit

[nitrodropsMember@nitrodropsJoin Date: 2009Post Count: 132]

April 26, 2010 - 5:58 am

Hi All,

Is it true that the the costs of running your own Super Fund annually is :

Setting up your own self-managed super fund (SMSF) can have its advantages, but it is not for everybody. And if you have less than $200,000 in super, then the administrative costs would probably make the venture uneconomical. In addition to establishment costs, you can expect to spend some $1000 to $1500 a year on running your fund.

Aside from costs, you also need the skills and time to manage your own fund, both of which can prove onerous.

Currently, have ~$30K in my super, not sure whether if it is wise to make it into a SMSF and use it for Property investment. But the costs of running own funds is bothering me now.

Also, can i combine my Super and my partner's Super into a single SMSF?

Cheers
Nit

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April 26, 2010 - 5:52 am

Matt007 wrote:

No problems. I should add to that that prior to actually constructing, they'd then need to get a "BA" which is a Building Approval to ensure that any construction meets with the Council's intent for the area. Eg: if its 'character' it has to be built in a certain style etc. This would involve having a builder submit plans to council for approval, much in the same way the Development Approval was done.

Good luck with your project.

Hi Matt,

how much costs for this phase for the "BA"?

looking for an opportunity to look for a double lot.

Cheers
nit

[nitrodropsMember@nitrodropsJoin Date: 2009Post Count: 132]

April 9, 2010 - 4:18 am

Thanks mate, u r brilliant!

[nitrodropsMember@nitrodropsJoin Date: 2009Post Count: 132]

January 24, 2010 - 1:21 am

Thnx mate!

[nitrodropsMember@nitrodropsJoin Date: 2009Post Count: 132]

January 22, 2010 - 9:30 am

Thnx mate.

What happens if i go for a double block or double title, i assume it will save me all these trouble? of course with all the subdivision done, the price will be more.

Cheers
Nit

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January 22, 2010 - 4:44 am

DWolfe wrote:

TREES! Depending on councils, the rubbish old tree which barely has any leaves must be kept and it doesn't matter if it is right in the middle of where you want to put a building! Yeah watch out for trees, Look for land in areas where there are recent subdivisions, this is good and bad. The architects and builders prefer a slope that is towards the street but they will cope. Check the overlays no environmental or heritage overlays that prevent all but very specific things, like only have building on 1/3 of the land or something.

Thnx mate.

A couple of qns for a newbie.

1.) Why would the architects and builders prefer a slope that is towards the street?
For new houses without using stumps, i assume the land gradient should not be more than 3 meters?

2.) Even the old tree (which barely has any leaves) is on the land which i am going to own? I also have to ask Council for approval to chop a tree growing on my land?

3.) Check the overlays no environmental or heritage overlays that prevent all but very specific things, like only have building on 1/3 of the land or something.

Can you elaborate a bit more on this? Does it means once i subdivide a land into 2 titles and build 2 houses, that should be safe?

Thanks mate.

Cheers
Nit

[nitrodropsMember@nitrodropsJoin Date: 2009Post Count: 132]

January 22, 2010 - 4:03 am

Hi All,

One query with regards to subdivision.

When choosing the land for subdivision with existing homes, what are the stuff to watch out for? So that Council will approve easily?

Below are my views, please kindly correct if i am wrong
– big land, preferrably >800sqm
– no pipes running below the land
– even land
– not within flood zone
– not DCP

Cheers
Nit

[nitrodropsMember@nitrodropsJoin Date: 2009Post Count: 132]

November 6, 2009 - 3:46 am

Btw, one of the little "CONs" of Redraw facility is.

The extra repayments you made, will only appear after the next repayment day.

Say, if you made extra repayments $10k on the 15th Oct, and the monthly repayment is on the 1st of each month, this $10k will only appear on the 2nd Nov as extra repayments, even though the mortgage loan is reduced with interest calculated on the 15th Oct.

Hence, any urgency for $10k, have to wait for a while unlike the offset accounts.

However again, variable loans come with a annual fees.

Cant have the best of both worlds right to these legalised LoanSharks?

Cheers
Nit

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October 13, 2009 - 1:55 am

Terryw wrote:

I am not a tax advisor, but know that redrawing from a loan means 'borrowing'. So this can creat big problems later on if the interest on the loan is ever claimed.

Using an IO loan with a 100% offset is a way to avoid this.

Thnx for your posts. Your post scared me. Just rang St G to confirm there will be no extra fees or interests charge when i redraw my money in the 'extra repayment' pool via internet banking.

If going via the variable + offset method, i will be paying higher interests. But being a PPOR, i reckon this is the best way.

Cheers
Nit

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October 13, 2009 - 1:53 am

sonyasal wrote:

HI Nit, 

is this loan on an IP or a PPOR?

There wouldn't be tax implications if it was your PPOR.

cheers

Sonya

Thnx Sonya. Currently it is for PPOR.

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October 11, 2009 - 11:24 pm

hydramax wrote:

Is their a minimum amount for each redraw and have you checked if there is  a fee attached each time?

Hydra

yes, i have asked, i can redraw any amounts in my extra repayments.

No fees attached for redraw via internet as it is St George Basic Home Loan. Got a black and white email from St G customer service on this.

Cheers
Nit

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September 7, 2009 - 1:46 am

propertunity wrote:

Will you be holding a bond type amount to be released to them on satisfactory condition after move out?

unfortunately, no bond.

Going to collect my keys later this evening, hope everything is in good shape.

Cheers
Nit