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Yes, would love a whiteboard session. Running the numbers on my newly purchased SMSF property & how it has to perform compared to if I had’ve kept depositing into my high growth industry fund. Hoping I’ve calculated correctly.
I never realized the level of control you have with an SMSF compared to traditional retail funds. Definitely considering this for my future investments
My brothers and I established our SMSF 2 years ago with the aim of owning 5 commercial properties. Our managed account starting at $700k, has appreciated by $1M in just the past year, if we made our research sooner we might have done a few properties already
That's precisely why we conducted a thorough research, which led to Emily ava milligan, who happens to be one of the best fund managers, our steps were calculated, not by luck
SMSFs are really good way to add to your portfolio. Keep in mind interest that you pay with these are bit higher. Also, factor in compliance cost. I set one up myself last year and I think it’s quite straight forward. Be mindful when you execute the Bare trust (asset holding entity). Bare trust execution date is very important. Each state has different rules. For example: NSW execution of the bare trust has to happen after the contract execution (exchange date of the contract)-if not you will end up paying double stamp duty. Great content PK. Thank you!
Good session guys. The in species transfer tip was a good one, I didn't know that, thanks. We have a property in SMSF - you need a lot of patience especially if you are self employed. Never settle for less than 60 days. We had to have a sizable cash or cash equivalent with the loan, which I must say has probably done better in the last 6 years than the property itself. I am glad we did it though.
The interest is so high on SMSF loan, the last time I asked was over 8%. The average annual property growth is about 5-8%, plus the associated cost is a lot higher than normal investment property. Unless the interest rate comes down significantly, or you can pay more than 50% of the property price.
One thing I learnt from my financial planner is once you have paid off the loan for your property within the SMSF you can use the equity from that property to purchase another one in the fund.
My husband and I recently set up a SMSF. It's quite overwhelming. Yes, I agree, self-education is crucial, and it requires lots of patience. Thank you for this video and for sharing some great tips.
Another gem of a video ! Certainly made me thinking closer to setting up smsf as opposed to couple of years I was thinking. Second part of video would be much appreciated with some more detailed aspects like setting fee range, tax implications, CG, and some numbers how it can outperform traditional super which also can be 10 percent annual. Thankd Bernie and PK, great video :)
Hi @Pk, that last part about transferring commercial to SMSF was the great tip and without paying stamp duty. need to do some research on that... this is so great and hard to believe
Amazing Amazing PK and Bernadette, every couple of moments I had aha moments. Working in superannuation, it's fascinating that this is such less known knowledge. Great session, more success to you both!
What a great and informative video. You both spoke and explained so well and you are easy going, lovely individuals. Well done. Just a small comment to mention further details about a bare trust setup. You do need to have an exact property address when you establish a bare trust. I don’t think it can be prepared beforehand ( unless you manually add the address into the deed?) Many thanks again for a great video. 👍
yes for part 2. great video...very much informative. thanks both of you... would like to hear about tax implications like whether negative gearing is applicable here, etc
Thanks very informative. Would really like a part 2 and I have some questions. Can you sell the property before you retire? If so what are the fees? (capital gains tax etc.) If you got pay rises and increased rent Can you use equity from the initial property to buy a 2nd property?
Great chat to whet the appetite into this useful ( and generous) additional avenue to get another property (with or without leverage) in a completely quarantined way from the rest of your life. Lots of rules and pitfalls. The more you learn the more questions you have! A few whiteboard egs definitely might speak a thousand words eg 1. costs for set up plus maybe a p and l ongoing per annum of this investment property part of a smsf. 2. columns comparing and contrasting investment in own name vs smsf. Idea of holding orher assets for diversification in smsf eg share portfolio. Possibly using dividend and interest income as extra funding? Limits on financial benefits if it becomes a big fund or capital gain. Are there ways to add value to property without contravening rules? Inability to refi cash out is important to know but can you refi the lender? What types of loans can you use? Thoughts on how long this generous policy of the government might last? Perhaps date time stamp it at the beginning. Thank you.
Doing this right now PK - setup in August last year and about to pull the trigger on our first IP in the SMSF in 2024. This might be a small warning for those that do this actually: it can be quite a long runway to get everything setup in your new vehicle, especially if you do it with your partner in a joint SMSF, as those institutions that hold your old individual Super balances are not Super keen to release them (see what I did there?). There's nothing in it for them but a loss, so they drag the chain. Seems perhaps you found the same initially? After you've jumped thru some sizeable hoops, you'll get access to your money, but my advice is don't expect it to be necessarily quick. 🙂
@bharath1992007 2 options for notifying your old Super fund. One is to contact them direct, with a number of identity docs all ready to go. They'll ask for certified/witnessed copies of your license and passport (100 points) as a minimum, so getting those ahead of time from a JP/Police Station etc will help. They'll also want all the info on your newly setup SMSF - it's trustee deed, it's bank account details, and the official guff that says you control it. So get that ready too, beforehand. The second way is to notify the ATO that you are switching. Officially, the ATO will tell you they are controlling it from that point onwards, but all they do is notify your current Super fund that your request to switch to an SMSF, is now a live request with them. The ATO won't do any follow up or leg work to rush it along. So your Super fund will just contact you anyway, and ask for the same things I went through above, but it might all take a while longer. So stick with Option 1: gather the paperwork beforehand, and notify your current Super fund yourself, so when they ask for all the docs, you can tell them you have it all ready to forward and would they please hurry it all up! 😆
Hi PK & Bernadette, thank you for this informative video. Iam very interested in this SMSF investment opportunities. I would like to speak to Bernadette further to find out my borrowing capacity. How can I get in touch with you. Thank you in advance.
Hi PK, might be a silly question however, with the cost of setting up a SMSF can this be paid for once it’s set up using the SMSF or would this need to be paid prior?
Yes for Part 2 PK. such an informative video for SMSF. I am your client in the course PK. I am doing researching SMSF for our next property PK. any chance I could get contact of Bernadette? Thank you
If the property has a granny flat at the back of it before it’s purchased by me and placed into smsf can that also be rented out as two dwellings under the smsf? Should we be on the look out for properties that have that configuration already part of the sale?
Guess the risk from Big 4 to fund SMS as a default on the loan the banks cannot seek losses from the SMSF should the asset not recover the losses for the bank.
FFS it'll take me 10 years to get to $120k before I can get a SMSF. By that time property values will have doubled and it'll take another 10 years to save another $120k. It's literally impossible for many battlers to get onto the property ladder.
My understanding is that cbus is a - not for profit INDUSTRY fund. Not a RETAIL fund which is for profit. Is she using industry and retail funds as interchangeable terms? and not clearly stating the difference?
If the funds are short in an SMSF can one add funds from bank savings account?? Or if needed in case of emergency can one transfer money from SMSF to bank savings account...??
i guess you can only be negatively geared up to amount of super contributions + rental income otherwise you'd empty your super balance just holding the property so you really want as much of a cashflow property as possible - hard with these rates and house prices i would say?
@Adminchannel0 wut? Your not admin, my question wasn't directed at you nor did op post a question, they made a statement.. and who even uses telegram🤦♂️😆 Bro...🤦♂️
i thought no stano duty when you buy through SMSF-Do you pay stamp duty in SMSF? SMSF trust deeds are generally stamp duty-free. However, the Northern Territory and Tasmania charge nominal fees on SMSF trust deeds. The State Revenue Office also exempted stamp duty on a property that is being transferred from an SMSF trustee to a member.6 Oct 202copied please let meknow VIC/Bris/perth
