All Topics / Finance / Buying a Property with a SMSF

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  • Profile photo of robin youngrobin young
    Member
    @robin-young
    Join Date: 2009
    Post Count: 3

    HI there-i;ve spent a fair bit of time reading about SMSF and buying property. Can anyone provide some clarity on the case study below

    I have $100,000 in my super fund (not smsf yet) and I’d like to purchase a piece of land worth about $90,000.

    Is this possible?
    Approx what are the set up fees for the SMSF?
    Approx what annual accounting fees?
    How would I get started?
    Would i need to pay stamp duty?

    Thank you so much..

    Robin

    Profile photo of maree_bradrossmaree_bradross
    Member
    @maree_bradross
    Join Date: 2007
    Post Count: 401

    Hi Robin – is the land zoned commercial land?

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Hi Robin

    Quick answer

    Is this possible? Yes it is under a SMSF

    Approx what are the set up fees for the SMSF? All depends on your Accountant but a Deed can be set up for around $1500 max.

    Approx what annual accounting fees? All depend on how complicated the transactions within the fund are and how much time your Accoutnant spends on the return. A SMSF needs to be Audited each year and there are few other ASIC requirements and levies. Allow $2500 / annum max.

    How would I get started? Get your Accountant to form a Trust Deed, open the Bank Account and Transfer your existing funds proceeds to the SMSF.

    Would i need to pay stamp duty? Buying in a SMSF is like any commercial transaction so YES you will need to pay stamp duty on the land. Remember you are unable to gear on a vacant block of land in Super and cannot borrow to build so need to think carefully about what you do.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
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    Profile photo of jsawtelljsawtell
    Participant
    @jsawtell
    Join Date: 2007
    Post Count: 57

    Hi Richard,

    Is it possible to buy a house/property jointly with SMSF (personally + SMSF) with a loan/mortgage?  In theory this is using the SMSF funds as cash for deposit.  Rental returns would be paid according to ownership % – where SMSF % would equal deposit as % of total purchase price.

    Thanks
    Jason

    Qlds007 wrote:
    Hi Robin

    Quick answer

    Is this possible? Yes it is under a SMSF

    Approx what are the set up fees for the SMSF? All depends on your Accountant but a Deed can be set up for around $1500 max.

    Approx what annual accounting fees? All depend on how complicated the transactions within the fund are and how much time your Accoutnant spends on the return. A SMSF needs to be Audited each year and there are few other ASIC requirements and levies. Allow $2500 / annum max.

    How would I get started? Get your Accountant to form a Trust Deed, open the Bank Account and Transfer your existing funds proceeds to the SMSF.

    Would i need to pay stamp duty? Buying in a SMSF is like any commercial transaction so YES you will need to pay stamp duty on the land. Remember you are unable to gear on a vacant block of land in Super and cannot borrow to build so need to think carefully about what you do.

Viewing 4 posts - 1 through 4 (of 4 total)

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