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I think I just found the answer to this after reading a technical investment publication called the Saturday Herald-Sun in Melbourne today on page 76... ! An SMSF can do a related party loan to a company or trust that is connected with the member, but not to the member directly. It can be for...

Manoj, Which lenders offer 90% LVR for Residential SMSF loans? That makes it much more interesting for those of us with low super balances. Thanks. Also, can you please elaborate on how you can access super before the preservation age? If you can, it would make super far more attractive for...

btw The whole thing gets a lot easier if you don't need to retire before 55.

How exactly do you calculate this?? Does sound like a Joint Venture doesn't it?! Haha, you're just stirring now! Agree with you on that... residential IP is the wrong (/not the best) asset class for retirement ie. the net yield and your return on equity is crap. And yes CGT sucks...

In Manoj's favour, if you had say 35k in super at 30 y/o, and invested 25k pa deductible contributions annually ($21250 after contributions tax) for the next 30 years at say a compound growth rate of 10% pa, you would have at 60 y/o... $4.5M...

How can you say this? You could have positively geared or ungeared investments generating income in a family trust with a number of beneficiaries including companies and some deductible super contributions, and you could potentially be paying an effective tax rate even less than the 15% tax...

joanmc, how come your preservation ages are 60 and 58? I thought they would be 55 for all people? Thanks for the clarification.

My answer for a younger person at present would be to invest in both, but with a strong overall bias towards outside of super investing initially. With any super contributions made being only up to the maximum deductible amounts and preferably geared if possible. Having said that I still have...

Alex, Another way to effectively access super before 55 is called spousal transfer of super contributions. Eg. A wife can transfer 85% of their annual super contributions to her husband (or vice versa). This is 100% of their contributions - 15% contributions tax. If the wife is 50 and the...

Also in case things really go to cactus and you're under real financial hardship it doesn't hurt to have some $ locked away in super.

But not necessarily that much lower for CIP. The LVR's are almost the same for RIPs or CIPs for super property warrants I believe. My plan is to have my SMSF predominantly consisting of direct and indirect commercial property.

Yes it is. But... I won't miss it anyway, and in a couple if years time, when my super balance increases, I can internally gear it up at 70% LVR for a RIP. And when this RIP goes up in value after a few years, I could sell it to realise the gains and pay the 10% CGT (rather than...

Exactly right. Precisely. I prefer the re-fi of debt in a high income earner's name and on-lending to a potentially lower tax-rate structure outside super like a DT, and with other beneficiaries including a company of course. Me neither, but I'm keeping an open mind about this, even...

Alex, not quite what you're after but... If you have a LOC against an IP outside super and you do a related party lend to your SMSF eg. for 100k, which then invests the funds in say shares, and that investment grows to 200k over time, the SMSF could sell those shares whenever and you can get...

Thanks for posting back :). Just to clarify... Does this rule apply if you are self-employed but don't come under the PSI rules or if you are a business owner? Thanks. I believe the only way is to (cautiously) do this sort of round about thing described earlier: There's a few other...

Oh, here it is I think... http://www.somersoft.com/forums/showthread.php?t=34595&highlight=7.5%25+CGT (ADD: I think the deductible contribution limits have changed since then though!)

Well, it doesn't really work if you're making lots of money and doing well at 40 y/o... Unless... you do some sort of ''give to daddy and get some pocket money in return'' kind of strategy. Come to think of it, Manoj is 40 y/o and seems to be doing just this (just teasing)!

What age would that be?

That's a shame, I think it's only a minority here who aren't grasping your concepts or for whom it's a bit too confronting. Don't let a couple of stray comments spoil all the fun! As I mentioned before, I think if you're 45-ish and are turning a blind eye to SG property strategies you really...

Great, thanks for the clarification on this strategy. Again, Manoj I think you're pushing a one-size fits all approach which doesn't really work for everyone, but does have merit for some (namely I feel for those 40-45+). Like some here have mentioned, residential IPs don't all lose money...