My 1st Super house

[agent007]

Settlement for my Super IP happened today. For any one else thinking in going this way,

1- Make sure that you solicitor understands all details in relation to Super legislation. In particular what name the contract of sale should be on. In my case, my solicitors in NSW and QLD spent a week discussing this same point.
2- Following on point 1, make sure that your solicitor engages with the bank’s solicitor and that they both agree the name that should be on the contract (4 days on this point)

Besides above points, it was a very easy process though, very costly in terms of documentation (custodian entity, company, etc).

After settlement, I still have another battle to battle. I need the Bank to take a clause out of the contract and if not, make them aware that I will make them responsible for triggering future CG and stamp duty charges

Good luck!

 

[MikeF]

Settlement for my Super IP happened today. For any one else thinking in going this way,

1- Make sure that you solicitor understands all details in relation to Super legislation. In particular what name the contract of sale should be on. In my case, my solicitors in NSW and QLD spent a week discussing this same point.
2- Following on point 1, make sure that your solicitor engages with the bank’s solicitor and that they both agree the name that should be on the contract (4 days on this point)

Besides above points, it was a very easy process though, very costly in terms of documentation (custodian entity, company, etc).

After settlement, I still have another battle to battle. I need the Bank to take a clause out of the contract and if not, make them aware that I will make them responsible for triggering future CG and stamp duty charges

Good luck!

Hi

Should have been a simple process re the name on the contract but I'm guessing that the property was in Qld and your lender NSW based and this could have been the problem.

I'd be interested to understand with which lender you went with and what the clause is in their documentation was that is cauing you concern.

The issue on CG and stamp duty is usually covered off in the bare trust documentation and not the lenders loan doc.

In NSW the bare trust documents needs to be stamped by the OSR as evidence that the property is really owned by the SMSF and this should overcome CG and SD problems when the property is eventually transfered back to the SMSF.

 

[bespoke]

congrats

I'm wanting to do this myself but dont have enough in my super fund. I have plenty in my government super fund but they wont let me roll it over.

Anyway, I'm interested to hear what strategy you are using.

Are you going to pay all rent and your super contributions straight off the principle or are you going to pay the minimum and acumulate the rest as a deposit on another "super" property?

 

[agent007]

Hi

Should have been a simple process re the name on the contract but I'm guessing that the property was in Qld and your lender NSW based and this could have been the problem.

Yes, the IP is in QLD and the paper work and I are in NSW though, ST George Bank is every where . I guess that one of the issues was that it was the first Super IP for the QLD solicitor.

I'd be interested to understand with which lender you went with and what the clause is in their documentation was that is cauing you concern.

The issue on CG and stamp duty is usually covered off in the bare trust documentation and not the lenders loan doc.

In NSW the bare trust documents needs to be stamped by the OSR as evidence that the property is really owned by the SMSF and this should overcome CG and SD problems when the property is eventually transfered back to the SMSF.

I don't have the details right now with me. But the issue revolves around one of the clauses on the undertaking guarantees that the custodian entity had to sign. It says something like "the property cannot be transferred to the SMSF without ST George approval". My solicitor explained that there has being a court case in which the person has to pay CG and Stamp duty during the transfer since, that clause highlights the fact that the SMSF wasn't the owner of the property or the full owner. It was also explained that this doesn't go against the Super legislation however, it is juts a TAX (ATO) issue.

Hope this help. Will let you know the outcome whenever it happens

 

[agent007]

I'm wanting to do this myself but dont have enough in my super fund. I have plenty in my government super fund but they wont let me roll it over.

Anyway, I'm interested to hear what strategy you are using.

Are you going to pay all rent and your super contributions straight off the principle or are you going to pay the minimum and acumulate the rest as a deposit on another "super" property?

For me the strategy is simple and I must add boring - Invest in growth assets with the max leverage possible at the lowest possible volatility while maintaining enough liquidity for SANF and thus, I selected to buy a property in the SMSF.
The loan is interest only for 5y and it has an offset account where the surplus funds will be accummulated. I'm not planning in buy another property in the forceable future since, I have finished the accumulation process however, I want to keep my options open.