All Topics / Creative Investing / Property Investing through Self Managed super funds

Viewing 9 posts - 1 through 9 (of 9 total)
  • Profile photo of sandyvgsandyvg
    Member
    @sandyvg
    Join Date: 2004
    Post Count: 18
    June 28, 2009 - 10:27 am

    Anyone got any info, experiences, etc that would help me increase my knowledge as to whether this is worthwhile, and possible?

    Thanks

    Profile photo of dr housedr house
    Participant
    @dr-house
    Join Date: 2001
    Post Count: 281
    June 29, 2009 - 7:41 am

    You need to set up a bare trust, the property goes into the trust.
    You have to get a NON-Recourse loan, very fiddly and difficult with the banks.
    So what I've done is purchase a property into super, under the trust.
    I've borrowed money against my line of credit and against a holiday home I own.
    The money can be lent to super (must transfer into the super fund before settlement).
    I am doing a 100% loan to my super.
    super reimburses me my interest and other loan expenses and collects the rental income.

    Profile photo of sandyvgsandyvg
    Member
    @sandyvg
    Join Date: 2004
    Post Count: 18
    June 29, 2009 - 12:18 pm

    Much appreciated info. Will certainly look into it. Can you give me an idea of the costs involved in setting up a SMSF and management fees I would be likely to pay? Then of course there are fees for property etc but the initial costs interesting.
    Thanks

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    June 29, 2009 - 12:59 pm

    look at http://www.trustdeed.com.au for heaps of info and some strategies.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of dr housedr house
    Participant
    @dr-house
    Join Date: 2001
    Post Count: 281
    June 29, 2009 - 9:26 pm

    I've had my SMS for some time, the cost was that of setting up a trust and company.
    My new bare trust only cost me $1200 (a solicitor whom I've known for some time).
    I keep losing with shares, every time I go back  into the share market they seem to drop, so I've had enough of that.
    The other problem in the past has been the lack of leverage in super in the  past and  the erosion by inflation of cash held.
    So this has been a window of opportunity to leverage into  super, control the loan amount and hopefully use the existing super cash to add value to the purchased properties by subdivision or building new homes.
    Also, even 4 fully owned properties will eventually give a steady retirement income and hedge against inflation

    Profile photo of sandyvgsandyvg
    Member
    @sandyvg
    Join Date: 2004
    Post Count: 18
    July 8, 2009 - 8:08 am

    Thanks for comments and info. Much appreciated! agree with all you have said and will make more enquiries.
    Cheers!

    Profile photo of StumpCamStumpCam
    Member
    @stumpcam
    Join Date: 2006
    Post Count: 76
    July 9, 2009 - 10:45 pm

    Hi Sandy, Stuart has good info on this in his latest newsletter: http://www.prosolution.com.au/news/newsletter.htm
    Cheers, S/C

    Profile photo of noddynolnoddynol
    Member
    @noddynol
    Join Date: 2007
    Post Count: 7
    July 16, 2009 - 1:10 pm

    i just read this book on the topic – which was very basic but still worth a read
    https://www.accounting.eknowhow.com/channaylor/html/s13_shopping/view_product.asp?id=23&nav_cat_id=7&nav_top_id=&dsb=76

    Profile photo of sandyvgsandyvg
    Member
    @sandyvg
    Join Date: 2004
    Post Count: 18
    July 18, 2009 - 9:49 am

    Thanks very much for the input. will read all above

    Cheers!

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