Hi All
I'm trying to set up a SMSF and getting as much information as I can .
I will put down what I know and if you can add or correct me I'm happy to listen to what comes my way.
1/ SMSF is basically a company of sorts ( and from what I can tell there all basically the same, if not what are the differences ?) , you can download the paper work to fill in and post off or lodge it over the net ( they talk about a 20min set up time ) you will need to think of a name for it.
Once your fund is issued with a TFN and ABN, you are able to open a bank account in the name of the fund.
There are 2 types of trustee's to the fund you can have ( I dare say there are a thousand more but I'm sticking to the ones I know, as the heading mentions ).
A corporate trustee ( more expensive )
or have
individual members
A corporate trustee is basically a company that you will need to set up if your a single person to run the SMSF ( as a trust needs 2 signatures to it )
Individual members is up to 4 members who must become trustee's and each sign the trust deed and various other forms.
2/ You now need a trust deed ( which basically says what the fund can and can't do in regards to its investment stragety ) these can also be downloaded off several sites filled in, and sent off .
I believe these are a generic form which covers most things a normal SMSF will do , this is also the form that needs most looking at before its all set in concrete and one to get advice over.
You then need a bank account and cheque book (pick a bank to do this with )
What I know about the banks,
westpac - they will lend money to a SMSF 80% LVR interest rate 8.05 ( as of the 9th of feb 2010) ( business rate ) that is the dept that looks after SMSF borrowings.
catch to be aware of ,
they will only lend to a corporate trustee, so be aware of that one fact if you are using westpac,
they will also need to have your trust deed doc looked over by there lawyers ($2200).
St George - they will lend to SMSF, 72% LVR, interest rate is 6.68
with them you will need a custodian trust deed as well, they help with this ( at a cost one would think ).
there are also many doc's you will need to supply too satisfy everyone and there dog ,eg letter from your employer and all the other usual suspects that need to be produced .
with St George they will take into account 80% of the rent and 80% of super contributions for serviceability .
Comm bank - do not lend
ANZ no idea at this point
NAB - waiting for them to get back to me
Haven't looked into any other bank/credit union
Other thing I know
This is all very new to banks so I have had some very blank expression after we get over 'yes I can help you with that' conversation when I ask to speak with someone more senior
Don't expect to get any answers from them, unless you have pre planned an interview where they will get someone in for you , the manager of the branch won't be able to help you either.
And Don't expect to get many answers from anyone even if its of a general nature, ( does someone know what happened, so everyone and there dog needs a disclaimer , even on here , have people rushed out and done something with general advice they got off a forum ??)
Now I know I haven't got all the information I need so fire away with what I need to know more of .
thanks stuart
I'm trying to set up a SMSF and getting as much information as I can .
I will put down what I know and if you can add or correct me I'm happy to listen to what comes my way.
1/ SMSF is basically a company of sorts ( and from what I can tell there all basically the same, if not what are the differences ?) , you can download the paper work to fill in and post off or lodge it over the net ( they talk about a 20min set up time ) you will need to think of a name for it.
Once your fund is issued with a TFN and ABN, you are able to open a bank account in the name of the fund.
There are 2 types of trustee's to the fund you can have ( I dare say there are a thousand more but I'm sticking to the ones I know, as the heading mentions ).
A corporate trustee ( more expensive )
or have
individual members
A corporate trustee is basically a company that you will need to set up if your a single person to run the SMSF ( as a trust needs 2 signatures to it )
Individual members is up to 4 members who must become trustee's and each sign the trust deed and various other forms.
2/ You now need a trust deed ( which basically says what the fund can and can't do in regards to its investment stragety ) these can also be downloaded off several sites filled in, and sent off .
I believe these are a generic form which covers most things a normal SMSF will do , this is also the form that needs most looking at before its all set in concrete and one to get advice over.
You then need a bank account and cheque book (pick a bank to do this with )
What I know about the banks,
westpac - they will lend money to a SMSF 80% LVR interest rate 8.05 ( as of the 9th of feb 2010) ( business rate ) that is the dept that looks after SMSF borrowings.
catch to be aware of ,
they will only lend to a corporate trustee, so be aware of that one fact if you are using westpac,
they will also need to have your trust deed doc looked over by there lawyers ($2200).
St George - they will lend to SMSF, 72% LVR, interest rate is 6.68
with them you will need a custodian trust deed as well, they help with this ( at a cost one would think ).
there are also many doc's you will need to supply too satisfy everyone and there dog ,eg letter from your employer and all the other usual suspects that need to be produced .
with St George they will take into account 80% of the rent and 80% of super contributions for serviceability .
Comm bank - do not lend
ANZ no idea at this point
NAB - waiting for them to get back to me
Haven't looked into any other bank/credit union
Other thing I know
This is all very new to banks so I have had some very blank expression after we get over 'yes I can help you with that' conversation when I ask to speak with someone more senior
Don't expect to get any answers from them, unless you have pre planned an interview where they will get someone in for you , the manager of the branch won't be able to help you either.
And Don't expect to get many answers from anyone even if its of a general nature, ( does someone know what happened, so everyone and there dog needs a disclaimer , even on here , have people rushed out and done something with general advice they got off a forum ??)
Now I know I haven't got all the information I need so fire away with what I need to know more of .
thanks stuart