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/
You mentioned the risks and possible downsides toward the end of your article, however you did not cover off on the benefits of this strategy. The keys being opportunity for leverage.. I couldn't help but think the article was infected by some bias against having property in SMSF, regrettably. I dont wish to be unfair or overly critical but I do hope this feedback improves the information you are putting out. After all the video is called 'Is it worth'.. hence I was hoping to hear your views on the pros and cons, to help decide whether its worth it, rather than you simply saying 'its up to you..'. You obviously have a great depth of knowledge - please share it and dont be afraid to offer an opinion!!!
Thank you for your honest feedback. It really is appreciated. The pros of property is that it can provide good income and capital growth, but this will depend on how much it's rented for, how much it was purchased for and how the property market performs overall. So, whether it's worth it or not is case-by-case. Most people who are experienced in investing in property will know whether it's worth it or not. Those who aren't experienced probably shouldn't be buying property within a SMSF. Leverage within a SMSF is not limited to property. Each week we have inexperienced investors who were seduced into setting up a SMSF and buying a property contacting us and trying to unwind it all because of unfulfilled expectations. Closing down such an arrangement is very expensive. If it seemed there was a bias, it may be a reflection of my opinion - you can't have one without the other.
I must agree with the above subscriber. I will start with saying your videos in general are excellent and please keep making them. Especially good for my sons who have No Idea! My personal experience with resi and Industrial Property under my SMSF have been excellent. I do understand that you tend to have high concentration of real estate in Property, but I also had cash and shares when holding resi. You did not mention that if you have new Property the Depreciation allowances will effectively reduce the total smsf tax rate. I ran an effective rate of 5-7% tax rate for around 10 years. I think if you did a new video on this topic and cover these extra matters it would be very beneficial to all viewers. 👍😎
@@SuperGuyAu thanks so much. Understand your views and opinion, and the risk. I think this frank and very honest view , as an addendum to your video, substantially enhances the quality of the information.
I recommend speaking to your financial adviser in relation to this as it will depend on your age at retirement and whether your funds are held in super accumulation, TTR or full account-based pension phase. If you have not yet met a full super condition of release, earnings (such as rental income) will be taxed at 15%. However, if you have met a full super condition of release, you can transfer your property to pension phase (prior to selling), where all CGT and earnings are 100% tax free.
@@SuperGuyAu - I want to get an investment property (not to live in). I already have a mortgage. Would it be too much if I got an investment property through the SMSF approach?
Hi Thomas, you can never live in a property while it is owned by a SMSF. However, you may choose to purchase the property from the SMSF at retirement (at market rates) or withdraw the property out as a lump sum payment (if fully retired and eligible) - being mindful of CGT and withdrawal taxes, as well as ensuring the Fund rules allow for it. Professional advice should be sought prior to doing anything such as this.
@@PKFresh_Peace_Love All the good questions and considerations he raises remain causes of concern whether he has personally found the balance of considerations amount to a negative or not
I can find out all these things from ATO. If you're gonna offer anything of interest, tell us the "slippery version"... something we can use. But I already know the answer to that too which is why I haven't liked or subscribed
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/
You mentioned the risks and possible downsides toward the end of your article, however you did not cover off on the benefits of this strategy. The keys being opportunity for leverage.. I couldn't help but think the article was infected by some bias against having property in SMSF, regrettably. I dont wish to be unfair or overly critical but I do hope this feedback improves the information you are putting out. After all the video is called 'Is it worth'.. hence I was hoping to hear your views on the pros and cons, to help decide whether its worth it, rather than you simply saying 'its up to you..'. You obviously have a great depth of knowledge - please share it and dont be afraid to offer an opinion!!!
Thank you for your honest feedback. It really is appreciated. The pros of property is that it can provide good income and capital growth, but this will depend on how much it's rented for, how much it was purchased for and how the property market performs overall. So, whether it's worth it or not is case-by-case. Most people who are experienced in investing in property will know whether it's worth it or not. Those who aren't experienced probably shouldn't be buying property within a SMSF. Leverage within a SMSF is not limited to property. Each week we have inexperienced investors who were seduced into setting up a SMSF and buying a property contacting us and trying to unwind it all because of unfulfilled expectations. Closing down such an arrangement is very expensive. If it seemed there was a bias, it may be a reflection of my opinion - you can't have one without the other.
I must agree with the above subscriber. I will start with saying your videos in general are excellent and please keep making them. Especially good for my sons who have No Idea! My personal experience with resi and Industrial Property under my SMSF have been excellent. I do understand that you tend to have high concentration of real estate in Property, but I also had cash and shares when holding resi. You did not mention that if you have new Property the Depreciation allowances will effectively reduce the total smsf tax rate. I ran an effective rate of 5-7% tax rate for around 10 years. I think if you did a new video on this topic and cover these extra matters it would be very beneficial to all viewers. 👍😎
@@SuperGuyAu thanks so much. Understand your views and opinion, and the risk. I think this frank and very honest view , as an addendum to your video, substantially enhances the quality of the information.
"The benefits of leverage". It's not what you OWE , it's what you OWN
Can i use the property equity from the investment property i bought with the smsf to buy another property to live in?
no, i don't believe you can.
can you leverage from an existing property in the fund, to buy another one within the fund?
No, a limited recourse borrowing arrangement only allows borrowing against one asset per loan and the loan must be associated only with that asset.
So i can't use smsf for a investment property i already have?
Can you go over what happrns to smsf property at retirement phase ? Any tax on rental ? Any tax when you sell ?
I recommend speaking to your financial adviser in relation to this as it will depend on your age at retirement and whether your funds are held in super accumulation, TTR or full account-based pension phase. If you have not yet met a full super condition of release, earnings (such as rental income) will be taxed at 15%. However, if you have met a full super condition of release, you can transfer your property to pension phase (prior to selling), where all CGT and earnings are 100% tax free.
If you have a mortgage already and living in the house, do you think it would be too much to invest using the SMSF approach?
I'm not completely sure what you mean. You are unable to live in a home that is owned by a SMSF.
@@SuperGuyAu - I want to get an investment property (not to live in). I already have a mortgage. Would it be too much if I got an investment property through the SMSF approach?
Hey great vid! Once you reach preservation age can you live in the property?
Hi Thomas, you can never live in a property while it is owned by a SMSF. However, you may choose to purchase the property from the SMSF at retirement (at market rates) or withdraw the property out as a lump sum payment (if fully retired and eligible) - being mindful of CGT and withdrawal taxes, as well as ensuring the Fund rules allow for it. Professional advice should be sought prior to doing anything such as this.
My question is have you bought property from the super?
I'm not sure of the relevance
@SuperGuyAu Just because you don't see the relevance, doesn't mean others don't.
@@PKFresh_Peace_Love All the good questions and considerations he raises remain causes of concern whether he has personally found the balance of considerations amount to a negative or not
sounds like a stitch up
😉 Promo*SM
?
I can find out all these things from ATO. If you're gonna offer anything of interest, tell us the "slippery version"... something we can use.
But I already know the answer to that too which is why I haven't liked or subscribed