smsf funds

It may be able to be done, but as trustee of your smsf you would be not acting in the best interest of your fund by putting all of its cash into the one investment. Consider carefully if this is the case.

It may also be possible to join with a spouse or others to pool your super money together. Many issues here to though.

Hate to disagree for once with Terry and Michael. 

I dont think $95,000 is necessarily insufficient to start your own SMSF and in fact i have done a couple with a less. 

All boils down to what you think you will invest in but assume it is say a $300,000 unit you could easily cover your 20% deposit, pay your acqusition costs, set up the Bare Trust and still have $10-$15000 sitting in a cash Term Deposit which you could add to by the rent and employee contributions.

Got a couple going thru for forum members at the moment with a lesser balance than that.

You just had to understand the Accounting and annual running costs v choice of investment and potential greater return.

Cheers

Yours in Finance

Hi Michael

Totally agree thats why i love this forum it is like open debate and you can learn so much from others.

Guess my arguement was that if Matthew was with a Retail Fund and fed up of seeing his Superannaution go backwards month to month the amount he had to invest could be rolled over, With specialist advice he could dip his toe into acquiring an investment property and still be able to have the balance of funds in cash meaning with fairly limited risk he could diversify and still be moving forward towards creating a long term nest egg for himself.

Cheers

Yours in Finance

Hi Rudra

Course all depend on the property itself but based on the fact that you need a minimum 20% deposit plus acqusition costs I would probably say $65-$75,000.

You however need to understand the Annual costs and reporting requirements and at that level probably are going to find a retail fund is slightly cheaper to run.

Of course the big difference is that you dont have the same investment choice.

I am in the process of writing an Ebook on SMSF and Financing property through them so shoot me an email and i will add you to the list of forum members who have asked me to send them a copy.

Cheers

Yours in Finance

Hi Richard,

Thanks for that, looks like I’ll have to wait a little bit longer before I can go down that path unless I do voluntary contributions. Look forward to reading your e-book on the topic.

Cheers
Rudra

Hi Terry. Im interested in your second statement. Issues with pooling super.

I literally just got back from my accountant about this and we are setting up a family super fund, which myself, wifey, and two brothers will be members of. We have a total of $230k.

What kinds of issues may we run into?

Terry, I have no doubt at all, if that happened my brothers would nominate my children as beneficiaries.

Anything else?

To my understanding if a person stops contributing to the smsf then that simply dilutes their share in the portfolio, that right?

It has to work in some way like that or no one would combine forces.

Hi Paullie

Yes when one member ceases contributing then their share of the overall fund is adjusted.

This is the same when the fund is formed. Assume husband rolls over 70K and wife 30K then future growth is apportioned accordingly. This is then adjusted each and every year depending on the individual contributions made by each member over that year.

Cheers

Yours in Finance