buying property with super

Regretfully Terry even post Howards Choices legislation certain Governement employees are restricted and cannot set up their own SMSF and have their employer contributions directed towards their own fund.

Some employees allow you to transfer the majority of your Employer Super Fund balance to a SMSF and as long as you retain a minimum amount still provide you with related insurance benefits which can be cheaper than taking out your own.

Cheers

Yours in Finance

I think it is just govt employees that are restricted?

I have taken 2 years researching setting up a smsf and moving forward. All the info on this thread is correct. I am with an employer who will not contribute to a smsf. Do not be deterred as there is always a way to meet any challenge. I am simply going to rollover some funds and keep the minimum in my emplyer super to maintain as per the employer request. FYI I am moving my life insurance into my smsf as the premiums are tax deductible. My husband and I have combined our super to form the smsf and plan to purchase multiple positive cash flow properties so my life insurance premiums will be funded by the income from the properties. This releases funds from our daily budget. Happy to discuss my experience with anyone if you pm me. I see some very good times ahead especially as I live in Qld and it seems Qld is finally seeing some much anticpated growth.

Hi Taxdiva,

I’m looking at doing the same thing, however I’m not tied to any particular fund. I’m very new to all of this so have many questions that I know of and questions I don’t even know I have yet
I tried to PM you but your profile is not accepting emails.

I’m wondering how expensive is fairly expensive to set up and maintain, and what happens, if for example, the property market crashes and your fund goes into the red? Or if you are dependant on rental income and you can’t find a tenant. I imagine there are penalties?

I can see what the advantages are but wondering what the drawbacks might be…?

Thanks in advance.

Hi there

I am happy to share some knowledge.  I have set up a smsf in the last 12mths and purchased a property through it.

Keep in mind we are almost at the end of the financial year now, so don't bother starting to setup a smsf till after the new financial year ticks over.  It would be ridiculous to set up a smsf and then have to do a tax return for it to cover a period of a couple of weeks.

If you drop me a PM I will be happy to give you a list of professionals I used…. accountant, mortgage broker, financial advisor etc.  The bank will probably require that you get a financial advisor to sign off that you understand you have to make repayments.  Very few financial advisors have insurance to cover them for this so you have to hunt around. 

Don't just use any accountant.  You need to use someone that has set up plenty of smsfs that have intent to buy property. 

Richard Taylor who has already posted on this thread can do the bulk of the thing for you. I used him as my mortgage broker for my smsf purchase, and he was fantastic.  Drop him an email.  I'm pretty sure he can also set up your smsf for you.  Nice and tidy.  Either way I'm sure he could refer you to a QLD accountant for anything he doesn't cover himself.  While it does not matter where your professionals are located (most things can be handled over the phone/email/fax), Richard is based in Queensland, and I see you're keen to find a team in QLD. 

cheers – and well done on your decision not to let others merrily lose your superannuation money any more!
jac

I'm sure you will have a willing audience down here Richard! Bring your jacket though it's quite fresh.

Heh Soloman

I wont be coming until the temp is over 20 degrees lol

Guys anyone interested drop me an email and i will put you on the invitation list.

Jac M that doesnt mean you as you are on the priority list.

Cheers

Yours in Finance