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
Hi Robin – is the land zoned commercial land?
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 | Australia's leading private lender
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
JasonQlds007 wrote:Hi RobinQuick 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.
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