Hey, I am looking to setup SMSF and buy a residential property. I am keen to know if anyone has done that before and any pitfalls to avoid. Also, how to maximise returns for retirement in SMSF?
Setup Self Managed Super Fund to Purchase Residential Property
bargainervic on 17/06/2023 - 11:45
Last edited 17/06/2023 - 12:11 by 1 other user
Last edited 17/06/2023 - 12:11 by 1 other user
Comments
100pct if possible?
40% initial for smsf purchase.
Step one: find an accountant.
Step zero: post on Ozbargain.
check out esuperfund.com.au. It complicates things if you can't pay 100% of the purchase price from the superfund funds initially.
You also need to consider that you can never benefit in any way from the property before retirement - you can't live their etc,
Commercial property can be leased to your own business at market rates 😉.
Nice try ATO.
After the royal banking commission a few years ago the major 4 banks basically won't lend to SMSF.
You have to go to tier 2 or 3 banks at higher rates.I did buy a commercial property under my SMSF with 20% deposit in 2011. Just tried again for another and found out the above
Have you considered how you will pay yourself a pension when you retire? Will you you sell the whole house or just sell the garage one year, the bathroom the next year, etc?
The house will be fully paid when I plan to retire. There will be rent coming from the house in SMSF. Also, sale of house will be tax free no cgt during pension phase.
What % of the SMSF would go to a property?