I can afford a house

[krisbarry]

That's a shame, you'll be missing the boat again,

Seem's SA is playing catch up with the rest of OZ.

Nice 40% plus gain's in some areas.

Better get that money out of your super fund

http://wic003lc.server-web.com/~admin417/uploads/Documents/Property Stats Jun07.pdf

Dave

Its all hype, many suburbs are dead flat, or going down!

 

[Kathmandu]

Its all hype, many suburbs are dead flat, or going down!

But just like shares, many are going up.

The smart money is already in on those areas, while others say "Its all hype, many suburbs are dead flat, or going down" and miss out alltogether.

Sound familiar?

Dave

 

[Kathmandu]

As stated numerous times over in this thread if you bothered to read it...that setting up a self managed super fund can allow me to buy a house, not to live in, but to rent out and collect the rent. The rent will then be deposited back into the self managed super fund.

So I stress again it is possible to buy a house with funds from a super fund. Alls I need to do is roll it over to a SMSF, find the right house, buy it and rent it out

Seem's to me that you are saying here that you can "buy a house with fund's from a super fund".

That would be accessing fund's would'nt it?

Buying a house would mean it was for personal gain would'nt it ??

Do you invest in a super fund to lose money??

Dave

 

[Flying Fish]

Get a full time job. Salary sacrifice 50%. Add 1000K of your own and you get 1500$. If you can't live on 28K a year then supplement with part time work. Easy money. Do it for a year or two and boost your super. Once the super is at say 100K you can do the smsf thing.

 

[Kathmandu]

Get a full time job. Salary sacrifice 50%. Add 1000K of your own and you get 1500$. If you can't live on 28K a year then supplement with part time work. Easy money. Do it for a year or two and boost your super. Once the super is at say 100K you can do the smsf thing.

But the question is, can you access the $100k of super fund's to purchase a house to put into a SMSF.?


DIY super - It's your money ... but not yet!

http://www.ato.gov.au/super/content.asp?doc=/content/47067.htm&page=15&H15

and more

http://www.google.com.au/search?hl=...om+super&btnG=Google+Search&meta=cr=countryAU

Dave

 

[Flying Fish]

I don't see why not. If you buy the thing out right, it becomes another form of investment, same as shares etc.

 

[Kathmandu]

I don't see why not. If you buy the thing out right, it becomes another form of investment, same as shares etc.

Fair enough, but STC states that all his cash is in the super fund, so no cash on hand to buy a property outright.

I realize that if I owned a property I could roll the owned property into the super fund, but that is not what my understanding of this thread is about.

Dave

 

[Julia]

Fair enough, but STC states that all his cash is in the super fund, so no cash on hand to buy a property outright.

I realize that if I owned a property I could roll the owned property into the super fund, but that is not what my understanding of this thread is about.

Dave

Dave,

I think perhaps the point of confusion here is whether the money is in a public super fund or a SMSF. If funds presently in a public super fund were eventually rolled over into a SMSF, then as far as I know it's possible to buy an investment property, with any profits being returned to the SMSF.

However, that doesn't alter the fact that the principal trustee of the SMSF still can't access either that house or funds liberated from sale of said house until reaching 55 or proving financial hardship or permanent disability.

So it's hard to see why you'd do it, really.
Given the sort of returns from real estate currently, I'd prefer my money in the stock market.

Another point regarding the "houses" for which photographs have been posted recently: I imagine the dollars required to bring these up to some livable (rentable) standard would exceed that of the asking price!
Even acknowledging that "you have to start somewhere" I simply can't see that starting with something like these would bring anything other than problems.

But good for you STC on so regularly increasing your super balance. At least you have an aspiration.

 

[Flying Fish]

Dave,

I think perhaps the point of confusion here is whether the money is in a public super fund or a SMSF. If funds presently in a public super fund were eventually rolled over into a SMSF, then as far as I know it's possible to buy an investment property, with any profits being returned to the SMSF.

However, that doesn't alter the fact that the principal trustee of the SMSF still can't access either that house or funds liberated from sale of said house until reaching 55 or proving financial hardship or permanent disability.

So it's hard to see why you'd do it, really.
Given the sort of returns from real estate currently, I'd prefer my money in the stock market.

Another point regarding the "houses" for which photographs have been posted recently: I imagine the dollars required to bring these up to some livable (rentable) standard would exceed that of the asking price!
Even acknowledging that "you have to start somewhere" I simply can't see that starting with something like these would bring anything other than problems.

But good for you STC on so regularly increasing your super balance. At least you have an aspiration.

I agree as an investment these types of places would be useless. If you live in one and are fortunate enought to have work in the area then yes it would be great, better than renting, but can't see that happening in these places. Then again I guess you could buy the place use first home onwers grant and go on the dole to pay it off. Wonder if you could get a low paid job, salary scarifice 50% and get the dole at the same time? grow some vegies in the backyard, visit the salvos or just go shoot some rabbits for food. You could also offer cheap board for other dole bludgers, something like 26$ a week cash.

 

[mime]

Good for you. I was thinking of buying property but realized that my capital could be used else where to make more money.

 

[krisbarry]

Switching into a new fund this week. Taking my entire account balance of $50,450 from Macquarie and heading back to Colonial First State. Have found a fund that has just started back in April 2007 called Australian Boutique Share fund and is managed by 5 fund managers, its geared as well and the share price is certainly cheap, about $1.06

I read in a book recently that is always good to switch to cheaper share price funds as the growth is much better. The more expensive a funds share price, the less movment and the less shares that you can buy with your funds.

So I am switching from a fund with a share price of $3.30 to $1.06

My aim is to have a share price of $2.12 within 2 to 3 years, which would mean that my account balalnce will double.

Ahhh yes home ownership is now very much possible.

Here are the details of the fund:

http://www.investsmart.com.au/funds/profile.asp?FundID=15044

 

[wayneL]

Switching into a new fund this week. Taking my entire account balance of $50,450 from Macquarie and heading back to Colonial First State. Have found a fund that has just started back in April 2007 called Australian Boutique Share fund and is managed by 5 fund managers, its geared as well and the share price is certainly cheap, about $1.06

I read in a book recently that is always good to switch to cheaper share price funds as the growth is much better. The more expensive a funds share price, the less movment and the less shares that you can buy with your funds.

So I am switching from a fund with a share price of $3.30 to $1.06

My aim is to have a share price of $2.12 within 2 to 3 years, which would mean that my account balalnce will double.

Ahhh yes home ownership is now very much possible.

Here are the details of the fund:

http://www.investsmart.com.au/funds/profile.asp?FundID=15044

I am storing this post, because I want to show it to you in 2 years time.

 

[krisbarry]

I am storing this post, because I want to show it to you in 2 years time.

Would you like to discuss it now so I can get an understanding for your reason for storing it?

 

[tech/a]

I'll take a guess.
You (Kris) are presuming that the fund will out perform as such will double in price.
Have you ever thought that it could infact halve or even worse?

I'm sure you wont be silly enough to sit by and watch it crash if in fact it does.
After all unlike a house you can sell it in a phone call---ehh Kris!.

 

[krisbarry]

I timed the market just beautifully. I am in the process of changing over funds today, so while the rest are watching their funds crash today after the spectacular fall on Wall Street, I will be scooping up and even bigger parcel of units at a cheaper price.

...and yes in the long term there are always other options like switching to cash in a crash

 

[tech/a]

!!!!!!!!!!!!!!!!!!!!!!

 

[wayneL]

...the spectacular fall on Wall Street...

You ain't seen nuttin'

 

[krisbarry]

You ain't seen nuttin'

Yep I see the light now

I am so glad that I timed the market for this down-turn. I am just hoping my new fund does not receive or process the cheque today, and waits till Monday at least.

My exit date on my last fund was 19th of July, so I am way ahead already. I guess this makes up for all the time I spent on the paperwork and I need to account for an entry unit price, which of course is a little higher than the exit price.

The housing down-turn in the US and a slight drop in base metals is making me wealthy, how ironic. More money for my house that is becoming more and more affordable.

 

[tech/a]

Kris.

Thought you maybe interested.

Ive made the following assumptions.

Retirement in 35 yrs.
Super Fund currently $50,000
Expected return each year say a conservative 20%
Tax rate 30%
Monthy contribution $400
Inflation 3.1%

If you can sustain that then the $5 million that is surplus in 35 yrs time should get you your house.
The BIG but is that these figures remain stat
An increase in inflation and a decrease in return and Snaffoo

Go here for a play with the calculator
http://www.invest.com.au/retirement...C=standard&OVADID=627851042&OVKWID=1981349542

The second chart presumes a 15% annual return and 4.1% inflation rate
All of a sudden you run out of money and have NO house (no funds to buy it!)

 

[krisbarry]

Kris.

Thought you maybe interested.

Ive made the following assumptions.

Retirement in 35 yrs.
Super Fund currently $50,000
Expected return each year say a conservative 20%
Tax rate 30%
Monthy contribution $400
Inflation 3.1%

If you can sustain that then the $5 million that is surplus in 35 yrs time should get you your house.
The BIG but is that these figures remain stat
An increase in inflation and a decrease in return and Snaffoo

Go here for a play with the calculator
http://www.invest.com.au/retirement...C=standard&OVADID=627851042&OVKWID=1981349542

The second chart presumes a 15% annual return and 4.1% inflation rate
All of a sudden you run out of money and have NO house (no funds to buy it!)

Thankyou for all your calculations but again you have made some big mistakes on assumptions only. Future forcasting with so many viariables is bloody dangerous if you ask me.

Anything can/could/will happen...play your life smart, then you will never run out of money, but you will die with money