Hey there all you keen finance experts! Hoping to get a few perspectives on the question above. My wife and I have about $210k each in super, so about $420k in total. We were toying with the idea of combining our funds in a SMSF, with a corporate trustee, so that we can purchase an investment property. What's stopped me from pulling the trigger so far is that our individual funds have been performing quite well so far and that we'd be putting all our eggs into one basket with the property. That and I'm very oblivious to what is involved in running a SMSF.
Wife and I are in our 40s and plan on working right up to retirement age, so roughly 25 years left. Would love to hear from people who have SMSFs—what do we need to look out for? Pitfalls? Should we even bother?
Thanks in advance!
UPDATE:
General consensus is no, stick with industry funds and look at ETF options they offer. PI in SMSF is a lot of work and may cost more than it's worth. Thanks, everyone for your input, especially those shared their SMSF experience!
Looks like the matter is decided on this one but FWIW I'd encourage the OP to run the ruler of this again but sticking with ETF's via a simple SMSF administrator like Stake Super.
People apply some questionable short sighted rationales to sticking with a super fund manager rather than an SMSF, the overlooked thing is that you can get any unrealised CGT wiped away if you hold through the accumulation phase into pension with an SMSF. Imagine that on 25yrs of CGT! Fund managers don't offer this - very overlooked aspect IF you can come up with good plan and stick with it.
Agree, short term costs especially in early days are much of muchness but more you have, the more an SMSF is streets ahead on cost front. But again I agree, does come down to owner skill but not that hard to just buy DHHF now and keep simple.
IP in SMSF, sure more complex but thats to be expected - a good SMSF admin like Grow Super will handle this easily. I'd be happy to take on short term marginal costs benefit KNOWING in longer term it will outperform due to tax benefits etc - just be aware of your overall financial balance i.e if you own home outside of super having further property inside it may be sub-optimal from diversification perspective.