Self Managed Super Funds...

[watto]

Hi Guys,

Well its been awhile since i posted anything in here..

I have been considering a self managed super fund for awhile now and found this website...

http://www.esuperfund.com.au/?gclid=CMq5oLTrzI0CFShxYAodjGRdIg

Does anyone in here use this service?

If so whats the good, the bad and the ugly...

Cheers
watto

 

[Raddles]

Hi there
we don't use the above organisation and can't really comment on their service.
We do use products by Superannuation Australia Pty Ltd who are involved with the taxpayers association (www.taxpayer.com.au).
Our ongoing fees are those paid to the tax office and our Accountant for the financial documents and audit - there is no other ongoing management fee (I note that the above organisation is charging an annual fee) - if you get involved with a good accountant - a lot of the information will be provided to you free of charge - and you will be notified of changes and steps you need to take with your fund.
thanks

 

[redwing]

Have a look at Needham and

SuperPlus

 

[Rixter]

Does anyone here use there SMSF to invest in residential property?

It will be a quite a while before I can access any of my super. I am wanting to roll it over into a SMSF and use the money as IP deposits.....is this allowable?

 

[Raddles]

Hi there
using super funds to purchase residential property is frought with difficulties - due to the prohibition on borrowing of funds.
It would be possible to use super funds to buy residential property but there can't be any mortgage involved - super fund property cannot be charged with the repayment of debt.
I note that I have considered doing a joint venture between the super fund and the family trust - but the property purchased would have to be unencumbered.
Any equity in the property can't be used to purchase further property. It is for this reason our self managed fund mainly has shares, managed funds and cash.
thanks

 

[sailor]

I bought 3 IP's with my self-managed super fund, BEFORE I realised I couldn't leverage them. Won't be making that mistake again...will I! So I'm not putting anything but the minimal payments into this fund....and will have to wait until I retire before I can do much with them, other than collect the rent and invest that into shares.

 

[Rixter]

Couldn't I use the money in a SMSF as 20% deposit and borrow the remaining 80% in my own name & on the title?

Or if the SMSF has to be on the title, put ownership as tenants in common 20/80?

 

[Raddles]

HI there
the only way that could happen is if the lender would agree not to charge the super fund monies in some way - they would normally require a mortgage over the title.
From a practical point of view - if there was any problems with the 80% lend - they would come looking at the whole property - so I don't think you would have a lender agree to forgo their rights over the property.
By all means contact some of the brokers on this site to see if any lender would approach the deal - but I doubt they would.
thanks