# DIY Super



## ceasar73 (4 July 2008)

Does anyone know if it is possible to invest ones super in the property market?

Is anyone out there currently doing so?

cheers,

ceasar.


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## tech/a (4 July 2008)

Only in my commercial property which we rent back off my fund.

As for other property currently its pretty difficult but can be done.
They are still formulating the way in which you can use SMSF as security for purchasing R/E inside your fund (As far as I have been told).
Otherwise freehold is simple.


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## ceasar73 (4 July 2008)

tech/a is it possible to build residential property using super?

thanks,

ceasar.


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## Bushman (4 July 2008)

There are many unlisted direct property funds that allow super funds to invest in super including residential/land bank type funds. 

As always, remember the RE's charge you a fee for these vehicle and some yields are propped up via income support. Also they are long-term investments with liquidity offered by the RE a la property.


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## explod (4 July 2008)

ceasar73 said:


> Does anyone know if it is possible to invest ones super in the property market?
> 
> Is anyone out there currently doing so?
> 
> ...




Yes I have done it.  Have had my own DIY for 10 years now.  You can own most property.  Most common would be a rental.  You or family unable to occupy though, must be seen as an investment for the Super Fund under the Regulations.  Property Trusts are mostly made up of Super Fund capital.

Have also brought and sold paintings, a Percival we made $10,000 on in 12 months, outlay $60,000    However I have a degree in fine art so knew what I was buying.


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## ceasar73 (4 July 2008)

explod said:


> Yes I have done it.  Have had my own DIY for 10 years now.  You can own most property.  Most common would be a rental.  You or family unable to occupy though, must be seen as an investment for the Super Fund under the Regulations.  Property Trusts are mostly made up of Super Fund capital.
> 
> Have also brought and sold paintings, a Percival we made $10,000 on in 12 months, outlay $60,000    However I have a degree in fine art so knew what I was buying.




explod - can I build the residential property using DIY, provided I then rent the property??

thanks to all - this is truly a great forum!


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## explod (4 July 2008)

ceasar73 said:


> explod - can I build the residential property using DIY, provided I then rent the property??
> 
> thanks to all - this is truly a great forum!




No, you can not occupy any property put together or purchased by your fund.    It may be possible depending on the size of your fund and the dynamics of how and when set up to take the property from the super fund as a lump sum if you are post 60 years.  However we are now stepping into areas where only a qualified person can assist you.

However you can rent it to someone else.  Your question can be read two ways so my first para may be irrelevant

Proper professional advice from at least two quarters on a matter is allways money well spent.  For a one off interview it is usually less than you imagine but obtain a quote first.  And choosing via the experiences of family and friends is often the best bet.


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## ceasar73 (4 July 2008)

appologies explod, The line "...I rent the property" should have read "...I rent out the property"

is it allowed to build and then rent out using DIY??

cheers,

ceasar.


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## stock_man (4 July 2008)

Macquarie Bank have a product that allows you to invest in residential property using your SMSF. However, it doesn't work exactly as you are asking.

http://www.macquarie.com.au/propertylever/index.htm

https://personal.macquarie.com.au/p..._funds/propertylever/propertylever_detail.htm



> From www.macquarie.com.au
> 
> Here's how it worksFirst, you find an eligible residential property to invest in. It's your choice. If approved Macquarie Property Lever will fund up to 55% of the property value by a limited recourse loan from Macquarie Bank.
> 
> ...


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