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1: yes 2. when you setup your SMSF, the documents supplied will have an investment strategy. if not you can write a few words down on a piece of paper and file it. 3. It depends on what investment option you had chosen for your super. I had all my super switched to fixed interest well before the...

Hi Barney To me renovating or adding a granny flat is about making more money so it isn't changing the nature of the investment. You'll find that adding a granny flat is done at council level so as long as you don't involve your SMSF funds, the ATO will never know. People interpret the...

I do have existing borrowings but I won't be borrowing to build the granny flat. I'll look into it when I'm ready. cheers

I'd change financial planner, I'm fully compliant buying old. You can build a granny flat provided your super fund has own funds and you don't live in it. Improvements are ok as well but its a fine line. Do some reading, see the URL's below and do a google search as well...

Hi cnotoham The smsf is doing very well, the equiry is like 80% return so far and i have cash reserves to start building a granny flat. I havent bought any other properties inside super because Ive been busy restructuring my portfolio and renovating. I cant think of any suggestion. Lending...

Yes the ATO now accepts this arrangement Please see ATO ID 2010/170 http://law.ato.gov.au/atolaw/view.htm?DocID=AID/AID2010170/00001&PiT=99991231235958

Marc 1 small change would have been to lend my own money to the SMSF (for the deposit) and to have used the SMSF's money to develop the site. I'll now put the development on the backburner and will lend money to my SMSF to buy another IP instead. Cheers

Risky Business I don't know what the current situation is with personal guarantees. Reading your post I feel that you should discuss your options with a SMSF specialist broker to get an idea of what's available and the going interest rates. Give Mike Feltscheer a call 0401 992 641...

Currently the SMSF legislation and the lending packages are restrictive but I'm sure that this will change over time. I haven't been told that it isn't. From the compliance point of view the money is indirectly invested (because the SMSF is saving 7% or so).

I'm guessing that it would be hard without having to rewrite the loan docs but this can be done. At present I don't know of any lender who is offering such an arrangement but I'm sure that over time the situation will change. If you have lazy money sitting around in your super then go for it...

No, the loan is interest only Perhaps your SMSF deed was written before 2007? You can get it updated through the people you bought it from The SMSF is the beneficiary and myself and my wife are the trustees who will manage the fund till retirement No sharing as such is allowed, we cannot...

Michael It sounds like a good idea and yes the bare trust documents are written specifically for each lender, however, I am told that they can be changed if required

Manoj no worries mate, I agree though that it's better to have the bare trust setup earlier or you could be in the unfortunate situation where the company name you want to use for your bare trust (and which you've used when you signed the contract) is already taken by someone else :eek:

Or you can do what I did and it will cost you nothing....

Dianne Ok your situation is unique. IMO it can be done provided you address the compliance issue of the loan documents with your solicitor and accountant. But if you don't have much income then there won't be much money flowing into your super either so you'll need to somehow contribute...

A finance agreement with a vendor would need to be written very carefully and to be screened by a solicitor for compliance and to make sure your SMSF's other assets are protected. IMO if you can get vendor finance go on your own without the SMSF because the income tax benefits are higher...

Darcy13 This is an unlikely scenario because the lenders won't give you a loan if your super fund can't comfortably meet it's loan obligations so if your employer contrributions don't cover the repayments the lender will ask you to salary sacrifice or they won't give you the loan. Salary...

The super fund would have to cover the expenses and any shortfall from its own funds. If your SMSF does not have enough funds, you could salary sacrifice or you could contribute direct

Sandy Don't listen to people who are ignorant or who have an interest in keeping your super with them. The gov agencies don't care what amount of money you start your SMSF with. As long as you follow what's written in your SMSF's investment strategy and don't go on a shopping spreed...

Not at all, use professionals and you'll be ok. The only issue I had was with the personal guarantee and for this reason I chose to get my loan from ST George.. If you buy the deed docs from a reputable company and use a SMSF mortgage broker you shouldn't have any problems. If you go for the...