澳洲Australia property Property Investment Inside SMSF | Sydney


在澳大利亚 I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo


Hi,

Thanks for all the great information I've read since discovering this forum site.

Can anyone shed light on any major differences in purchasing and managing IP's inside of a SMSF? I'm referring more to the process of managing it. Ie. loans, cash accounts, gearing levels.

My understanding is that you can have a limited recourse loan facility set up in your SMSF, upon preservation age your yields are tax free on any property that was inside the SMSF and you can salary sacrifice part of your income to add extra $$.

Cheers.  

评论
Can borrow up to 80%. Rates slightly higher and set up costs higher than normal lending.

One major limiting factor is you cannot access equity.  

评论
Thanks Terry.  

评论
Make sure you understand the exit strategy for the SMSF. When the fund goes into its pension phase, it has minimum amounts which it must pay as a pension. You can't sell part of a property so the fund needs to sell the entire property to remain compliant.  

评论
Terryw said: ↑
Can borrow up to 80%. Rates slightly higher and set up costs higher than normal lending.

One major limiting factor is you cannot access equity.Click to expand...
well, you can access the equity to be fair- but you would need to sell the property and pay CGT of 10% to do so ( unless you sell it after you hit pension phase, where you'd pay no CGT) and then the funds go back into the SMSF.
But you cant access the equity with a second loan to get deposit and costs for another purchase.  

评论
Ok. Thanks for replies.

So it seems that the advantages are the tax free income on pension age and CGT exemption.

Risk versus reward I suppose with how much you want to put into SMSF and weighing it up with current lifestyle needs. It would be great to have enough capital inside SMSF to comfortably live off the dividends on retirement.

I'm new to IP investing and loving it. A friend last year introduced me to the idea of IP's and strategies associated with it. I became one of the 1/100 people that he said actually act on his information and advice. And as he said at the time, everyone has thanked him since.

It's a very enjoyable learning curve. I hope to be able to give back to this forum from my experiences. I thought I was doing well and going along ok in life, but little did I know how naive that was, the ignorant bliss.

Thanks.  

评论
In some ways property is a good SMSF vehicle because it's quite passive and long-term. Just don't get carried away with it though - there's lots of restrictions on SMSFs, and it is impossible to extract equity from a SMSF property without selling it.  

评论
Van Persie said: ↑
Ok. Thanks for replies.

So it seems that the advantages are the tax free income on pension age and CGT exemption.

Risk versus reward I suppose with how much you want to put into SMSF and weighing it up with current lifestyle needs. It would be great to have enough capital inside SMSF to comfortably live off the dividends on retirement.

I'm new to IP investing and loving it. A friend last year introduced me to the idea of IP's and strategies associated with it. I became one of the 1/100 people that he said actually act on his information and advice. And as he said at the time, everyone has thanked him since.

It's a very enjoyable learning curve. I hope to be able to give back to this forum from my experiences. I thought I was doing well and going along ok in life, but little did I know how naive that was, the ignorant bliss.

Thanks.Click to expand...


Residential property via your SMSF shouldnt be viewed as part of the same strategy you use in your individual name. The marginal tax rates are different, the LVR's available are different, and the legislation around what you can and cant buy are different. It should be a separate strategy, with a longer term/retirement time frame in mind.

Having said that - there's no doubt at all that the concept of gearing can potentially supercharge your SMSF balance when compared to ungeared super, reliant on member contributions and income from dividends.

Like all things- crunch the numbers and seek advice from professionals, but Im sure you'll find that an SMSF with 150K or more could probably gear into a 300K plus investment property without too much trouble (income permitting) and if that property grows at roughly the same kind of percentage as other asset classes (equities for example) you'll end up streets ahead, even after selling the property (CGT free) at pension age and paying down the loan. Your net SMSF position will potentially be hundreds of thousands more.

And if you go with a loan product that doesnt required personal guarantees, the SMSF's liabilities wont have any impact on your capacity to borrow as an individual, outside the SMSF.  

Property Investment

Australia property Selling Hints | Sydney

澳大利亚Hi folks I recall ready somewhere about what are some simple tricks for making your place more attractive during a home open. Im seriously thinking of selling my little pad and want to maximise my efforts. Any hints greatly appreciated. 评论 ...

Property Investment

Australia property Re-zoning | Sydney

澳大利亚What would the chances of a NSW Local Council allowing a community titled development (homes, community buildings, etc) on an area zoned Protected Agricultural land? Does anyone have experience in this area? Looking at the local council LEP, ...