Buying an investment property thru super. Need a decent accountant. Have you done this before?

grabngo on 23/07/2016 - 18:03

We are consolidating our superannuation and are looking at buying an investment property.
Our usual accountant is charging approx. $3000 to set this up which I believe is too expensive.
Then we also have to get the process audited which I understand.
The whole thing will cost approx. $5000 a year according to our accountant.

Questions that arise are:

  1. Have you an investment property thru your super?
  2. Are these costs right?
  3. Anything else we should know.

Thanks in advance

PS I am aware that we would never be able to stay in the property and that $5k a year may not seem like a lot but it is.

Financial

Comments

  • CyberMurning on 23/07/2016 - 18:16

    I heard to buy property using super you need to pay 30% or 40% deposit not 10 or 20%

    • bemybubble on 23/07/2016 - 18:47
      +2

      Depends on the property and lender. But you are somewhat correct. I.e. Apartments require 40% with most banks and some won't even lend on apartments for funds…

  • chumlee on 23/07/2016 - 18:29
    +1

    Your accountant is bending you over his sofa.

    I use esuperfund and so do some family and friends. I don't have a property in my superfund but I know they charge the same to do the end of fin year accounts as a non property superfund

  • bemybubble on 23/07/2016 - 18:46
    +2

    If it's a normal super fund with a corporate trustee you're looking at about 2k to setup on average. Ongoing fees are also about 2k and the audit is around 500 bucks. If you need a bare trust (to facilitate borrowings) add another 1k. In other words. 2-3k to setup and 2.5k a year to maintain

    • bemybubble on 23/07/2016 - 18:50
      +2

      Furthermore I should add. If you borrow to buy it must be for a 'single acquirable asset'. In other words, if you buy a block of land with borrowings and intend to develop it you can't until it's become unencumbered.

  • KH on 29/07/2016 - 14:25

    my opinion is as per bemybubble in regards to cost.

    Just be aware that you are unable to cross collaterise the property once you purchase it through SMSF.

    So if you are planning to purchase second property through the SMSF, for the 20%-40% deposit will you need to put in extra contribution from your own pocket.

    Some may ask why 20%-40% deposit, pending on property type (house / apartment / location) bank will have different requirement

Login or Join to leave a comment
Login Join