- Need specialist assistance
- Require at least $150,000 for deposit and purchase costs ($400k property)
- Legal and financing costs to set up can be high $6-10,000
- Bare Trust is a special trust WITHIN the SMSF, has not tax return or trading, need a new Bare Trust for EACH property
- No-Recourse Loan is a Commercial loan, not often arranged with Retail Brokers, and some banks do not offer the product
- If there is only enough in the SMSF for one property (as the only asset) could be considered risky with single asset
- Cannot acquire property from a related party (Part 8 SIS Act) eg family relation, or own home (but you can if asset is business property, listed shares, widely held unit trust)
- Must rent to an unrelated party
- Do you manage the property or use a management agent
- Small details missed can be very costly in terms of stamp duty and legal costs
To learn more about this and the following topics –
- What’s involved in an SMSF and does it suit you?
- I want my business to be my super – can I do this and how?
- Should I borrow to buy property for my SMSF?
see Seminar page http://wp.me/P1sLJd-f