DIY Super

[ceasar73]

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

Is anyone out there currently doing so?

cheers,

ceasar.

 

[tech/a]

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.

 

[ceasar73]

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

thanks,

ceasar.

 

[Bushman]

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.

 

[explod]

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

Is anyone out there currently doing so?

cheers,

ceasar.

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.

 

[ceasar73]

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!

 

[explod]

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.

 

[ceasar73]

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.

 

[stock_man]

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.

On settlement of the purchase, the property is held on trust for your SMSF by a security trustee. Your SMSF gets any net financial benefits of owning the property whilst the rest is taken care of by Macquarie Property Lever. You sit back, relax and receive any net benefits from your investment for the next 9.5 years, while a professional property manager appointed by Macquarie takes care of your property.

Right from the start you receive the net rental income from the property, plus any potential tax benefits from the investment, less the establishment and transfer costs, interest on the Macquarie Property Lever investment and liabilities of the property such as maintenance and management costs.

After 9.5 years, or before if you choose*, your SMSF repays the Macquarie Property Lever facility. And the property is transferred to your SMSF. Or if you prefer you can direct the security trustee to sell the property (to an unrelated third party) at a time that suits you.

*Subject to early prepayment fees