My Super Fund owns a property in Sydney

I have a family super fund, all it owns is one property in Sydney, worth about $600,000 with no mortgage. I have these questions, appreciate any advice that can be offered to me:

1)
My Accountants set up this fund for me. What with the annual audit and returns they make to ATO, it costs me a lot each year - and it all seems over kill for just one property. Is there a better and cheaper alternative to this ?

2)
As the property is owned outright, should I be using it's equity to invest further, if so into what - what is best suggestion and I assume this is allowed under the self managed super fund ?

Thank you.

 

consul

welcome to the forum.

What amount is he charging you?
Unless you are doing shares trading your return should be fairly simple.

Ofcourse there is the audit and this could be an additional $500.

cheers

 

I am pretty sure you can not do this. A super fund is not allowed to borrow against the assets of the fund.

A super fund can borrow in some special cases, though, this is for the purchase of new assets, and not against existing assets. Does the super fund have enough cash, for a deposit (maybe about 30-40%) on another investment property?

 

Hi Consul,

1. One of the joys of SMSF.
2. Like Ashwright said.

A common theme among accountants is recommending client's set up SMSF but then don't give them the relevant advice relating to their investments. This is why they will lose client's to accountants/financial planners who will help them with their investments.

Cheers,

Dan

 

Many thanks, I pay about $1500 per year. I wonder what is best way forward ?

 

No cash, just the property we own outright, I wonder what is best way forward ?

 

Thanks for your reply. What is your suggestion as to the best way forward in my case ?

 

The amount sounds about right to me.

I am guessing that this fee includes the external audit? (your accountant could be paying this fee on your behalf?)

Don't be too concerned about this amount, a SMSF has operating costs but if you were having your money in an industry super fund you would be paying more.

Anyway, if you are interested to lower your costs further and to still get good service, my accountant charges less and if you are interested I can send you a PM with his details.

cheers

 

Consul

I don't know your particular situation but if it was me, I'd gear to the maximum
LVR I could get.

Having accumulated this much in super I am guessing that you are near retirement age and therefore perhaps it would be wise to visit a financial planner.

There are many options with a SMSF but how you structure it would depend on your individual circumstances and your age.

Can your tell us your age?
Do you have other investments outside super?
Are your employer contributions staying in your SMSF savings account?

cheers