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Yep. Just purchased my first investment property in Brisbane with an SMSF. Is a million times better than leaving it in Super given the massive rort that industry is.
I have a property in a smsf. So glad I did as the balance of my super went up so much, far more than when I had my super in a managed super fund. Yes there were those initial start up costs to set it all up, but in comparison to the couple of hundred thousand made in capital growth in a few years, it’s only a scratch on the surface. As soon as I pay down the property I am getting a second one. Which will pay down quicker with the rent coming in from the first as well as the rent from the second. I will keep them until I retire and then roll them into my retirement fund , saving all that capital gains tax.
Hi Chris, just out of curiosity, if you were to sell your existing property out of super and purchase a new one, can you use the same bare trust or you'll need to setup a brand new truat? Thanks, Eugene
Great information, simply and to the point. Much appreciated. I'd say pay a few thousands to have your own SMSF rental property, 100 times better than having some Superfund charge you an arm and a leg to manage your money in the dark using confusing strategies you know very little about.
My husband and i have a SMSF which holds 1 residential property only (we also both have an industry fund). We would like out of the SMSF due to the onerous nature but we would like to keep the property - is this possible ? my husband is retired but i am not!
Hi Michelle. Yes, this is possible. If you would like specific advice on your options and how this should be done, feel free to get in touch with us here torowealth.com.au
Hi Chris, I was aware of most of the points you had here, but I became more interested you you suggested the lender did not need to be a bank. Would the following work? SMSF has $1.0M, I lend it $1.0M to buy a property. It pays back my loan at commercial rate of 7% being that LR loans are generally more expensive. Seems like a good place to invest for a good return rather than hold on deposit or play the markets…. Is there a downside to this that I’m not seeing other then perhaps having the capital tied up?
Hi Paul, there are several considerations that need to be taken into account to determine the viability of such a strategy, as well as whether your SMSF even allows for a member-funded LRBA. But, more importantly, whether such a strategy is appropriate based on your needs and objectives. I would strongly suggest obtaining personal financial advice prior to making any decisions. If you do not already have a trusted adviser, feel free to arrange a video consultation with us here calendly.com/torowealth/initial-video-call
Great video on LRBA and SMSF. However just have one question. If there's an investment property that I've purchased without using the super. Can it be transformed as investment property through SMSF at a later point in time
This is what ChatGPT told me: In Australia, if you have a self-managed superannuation fund (SMSF), you generally cannot rent a property owned by the SMSF to yourself or any related party, including family members or business associates. This is because the Superannuation Industry (Supervision) Act 1993 (SIS Act) has strict rules to ensure that SMSFs are maintained for the sole purpose of providing retirement benefits to members. This rule is called the **"sole purpose test"**, and it prohibits any personal or related-party use of SMSF assets outside of very limited exceptions (such as business real property used for business purposes). If you violate this rule, the Australian Taxation Office (ATO) can impose severe penalties on your SMSF, including taxation at the highest marginal tax rate, fines, or disqualification of the trustees. There are, however, specific rules regarding **business real property**, where an SMSF can lease a commercial property to a related party as long as it is done at arm's length and on commercial terms. To ensure compliance with SMSF regulations, it is essential to get proper advice from a financial advisor or SMSF specialist.
Assuming I would get an investment property with an SMSF? It really depends on the situation. There's no real general answer. It all depends on the property value, rental yield, contributions being made to the fund, etc. Be very mindful before jumping into such an arrangement and definitely seek advice from a SMSF specialist adviser first. There are a lot of costs and administrative responsibilities associated with owning a property within a SMSF.
@SuperGuyAu Thank you for the advice, I don't have as much super as I should. Given I was an apprentice for 4 years, then changed careers at 26 and started from the bottom again. But I'll reach out to a specialist & see what my options are.
Can someone please help me to understand? If I purchase a property through BareTrust and rent all expenses will be paid from the SMSF account. What is my profit at the end of the month? We have an investment property (not SMSF) and I receive rent money at the end of the month and either spend it on my family or save some of it. Bit confusing so please help.
The Big Four Banks don’t lend for SMSF property purchases which is limiting who you can borrow from. While the loans are non recourse, other lenders that do lend to SMSF require the trustees to sign personal guarantees which is not disclosed upfront and is outrageous. APRA should be investing this.
Hey everyone, thanks for watching! Ready to take control of your retirement? Download our FREE 6-Step Superannuation Check today: www.superguy.com.au/super-tips/
Yep. Just purchased my first investment property in Brisbane with an SMSF. Is a million times better than leaving it in Super given the massive rort that industry is.
I have a property in a smsf.
So glad I did as the balance of my super went up so much, far more than when I had my super in a managed super fund.
Yes there were those initial start up costs to set it all up, but in comparison to the couple of hundred thousand made in capital growth in a few years, it’s only a scratch on the surface.
As soon as I pay down the property I am getting a second one. Which will pay down quicker with the rent coming in from the first as well as the rent from the second.
I will keep them until I retire and then roll them into my retirement fund , saving all that capital gains tax.
Sounds like you know what you want. Glad to hear your strategy is working for you.
Hi mate can i contact u, need some info
Hi Chris, just out of curiosity, if you were to sell your existing property out of super and purchase a new one, can you use the same bare trust or you'll need to setup a brand new truat? Thanks, Eugene
Definitely starting to think about it. Considering my investment outside my super made more in one year than the total amount in my super
Great information, simply and to the point. Much appreciated.
I'd say pay a few thousands to have your own SMSF rental property, 100 times better than having some Superfund charge you an arm and a leg to manage your money in the dark using confusing strategies you know very little about.
Glad is was helpful!
Hi, I have enough money just to buy land, but will need to borrow money to build. Can this be done in this LRBA arrangement?
Excellent video. Thank you
Great video!! I’m about to setup my smsf and get finance to buy a place
Thanks! All the best!
Economic investigator Frank G Melbourne Australia is following this informative content cheers Frank 😊
Thanks for that Frank!
My husband and i have a SMSF which holds 1 residential property only (we also both have an industry fund). We would like out of the SMSF due to the onerous nature but we would like to keep the property - is this possible ? my husband is retired but i am not!
Hi Michelle. Yes, this is possible. If you would like specific advice on your options and how this should be done, feel free to get in touch with us here torowealth.com.au
Hi Chris, I was aware of most of the points you had here, but I became more interested you you suggested the lender did not need to be a bank. Would the following work? SMSF has $1.0M, I lend it $1.0M to buy a property. It pays back my loan at commercial rate of 7% being that LR loans are generally more expensive. Seems like a good place to invest for a good return rather than hold on deposit or play the markets…. Is there a downside to this that I’m not seeing other then perhaps having the capital tied up?
Hi Paul, there are several considerations that need to be taken into account to determine the viability of such a strategy, as well as whether your SMSF even allows for a member-funded LRBA. But, more importantly, whether such a strategy is appropriate based on your needs and objectives. I would strongly suggest obtaining personal financial advice prior to making any decisions. If you do not already have a trusted adviser, feel free to arrange a video consultation with us here calendly.com/torowealth/initial-video-call
Great video on LRBA and SMSF.
However just have one question.
If there's an investment property that I've purchased without using the super. Can it be transformed as investment property through SMSF at a later point in time
A SMSF can’t acquire a property from a related party unless it’s business real property.
Would I be able to rent from my SMSF property?
I had the same question, unfortunately not :(
This is what ChatGPT told me:
In Australia, if you have a self-managed superannuation fund (SMSF), you generally cannot rent a property owned by the SMSF to yourself or any related party, including family members or business associates. This is because the Superannuation Industry (Supervision) Act 1993 (SIS Act) has strict rules to ensure that SMSFs are maintained for the sole purpose of providing retirement benefits to members.
This rule is called the **"sole purpose test"**, and it prohibits any personal or related-party use of SMSF assets outside of very limited exceptions (such as business real property used for business purposes).
If you violate this rule, the Australian Taxation Office (ATO) can impose severe penalties on your SMSF, including taxation at the highest marginal tax rate, fines, or disqualification of the trustees.
There are, however, specific rules regarding **business real property**, where an SMSF can lease a commercial property to a related party as long as it is done at arm's length and on commercial terms.
To ensure compliance with SMSF regulations, it is essential to get proper advice from a financial advisor or SMSF specialist.
I just purchased SMSF property, there's no offset account, how to paid off the loan faster
I have same question
What would you suggest as a minimal amount to use to get an investment property with SMSF?
Assuming I would get an investment property with an SMSF? It really depends on the situation. There's no real general answer. It all depends on the property value, rental yield, contributions being made to the fund, etc. Be very mindful before jumping into such an arrangement and definitely seek advice from a SMSF specialist adviser first. There are a lot of costs and administrative responsibilities associated with owning a property within a SMSF.
@SuperGuyAu Thank you for the advice, I don't have as much super as I should. Given I was an apprentice for 4 years, then changed careers at 26 and started from the bottom again.
But I'll reach out to a specialist & see what my options are.
Can someone please help me to understand? If I purchase a property through BareTrust and rent all expenses will be paid from the SMSF account. What is my profit at the end of the month? We have an investment property (not SMSF) and I receive rent money at the end of the month and either spend it on my family or save some of it.
Bit confusing so please help.
They all go to your super account and will get audited every year. You obviously can't use it until your retirement.
Why would it cost to set it up.Surely can set it up yourself
The Big Four Banks don’t lend for SMSF property purchases which is limiting who you can borrow from. While the loans are non recourse, other lenders that do lend to SMSF require the trustees to sign personal guarantees which is not disclosed upfront and is outrageous. APRA should be investing this.