Whether to Borrow in an SMSF involves several considerations:

Self Managed Superannuation Funds Simplified

SMSF Simplified

  1. Need specialist assistance
  2. Require at least $150,000 for deposit and purchase costs ($400k property)
  3. Legal and financing costs to set up can be high $6-10,000
  4. Bare Trust is a special trust WITHIN the SMSF, has not tax return or trading, need a new Bare Trust for EACH property
  5. No-Recourse Loan is a Commercial loan, not often arranged with Retail Brokers, and some banks do not offer the product
  6. If there is only enough in the SMSF for one property (as the only asset) could be considered risky with single asset

    Property in self managed super SMSF superbenefit

    Property, SMSF

  7. 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)
  8. Must rent to an unrelated party
  9. Do you manage the property or use a management agent
  10. Small details missed can be very costly in terms of stamp duty and legal costs

To learn more about this and the following topics –

  1. What’s involved in an SMSF and does it suit you?
  2. I want my business to be my super – can I do this and how?
  3. Should I borrow to buy property for my SMSF?

see Seminar page http://wp.me/P1sLJd-f


About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
This entry was posted in SMSF Basics - all to know, SMSF Investing, SMSF Property, SMSF Seminars, Super Law & Compliance and tagged , , , , , , . Bookmark the permalink.

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