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There's plenty of info on how to buy a house in the name of a SMSF; But does anyone know about 'drawdown' on one?
Topic Started: 26 Aug 2014, 09:32 PM (1,061 Views)
herbie
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For example:

* Is stamp duty payable on transfer from the SMSF to the fund beneficiary?
* Can the house be transferred a bit at a time over a number of years, rather than all in one great big whack?
* Any thoughts on how to best fit the transfer into a TRIP? (If you think a trip is something you do on drugs, don't feel compelled to reply - :) )
* Plus any other general (FACTUAL - as opposed to made up bullshit guess type) info aside also appreciated Ta.

As I have one and am a bit interested in starting to consider alternative long term possible exit strategies.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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peter fraser
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herbie
26 Aug 2014, 09:32 PM
For example:

* Is stamp duty payable on transfer from the SMSF to the fund beneficiary?
* Can the house be transferred a bit at a time over a number of years, rather than all in one great big whack?
* Any thoughts on how to best fit the transfer into a TRIP? (If you think a trip is something you do on drugs, don't feel compelled to reply - :) )
* Plus any other general (FACTUAL - as opposed to made up bullshit guess type) info aside also appreciated Ta.

As I have one and am a bit interested in starting to consider alternative long term possible exit strategies.
Those are very technical questions. I'd try kennyjaiz if I was you. He might know.
Any expressed market opinion is my own and is not to be taken as financial advice
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barns
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herbie
26 Aug 2014, 09:32 PM
For example:

* Is stamp duty payable on transfer from the SMSF to the fund beneficiary?


No so long as it's structured properly at the start and the SMSF pays stamp duty on the purchase (even if it's a transfer from a related person to the SMSF - commercial property only).
herbie
26 Aug 2014, 09:32 PM

* Can the house be transferred a bit at a time over a number of years, rather than all in one great big whack?
No. Has to be in one go.
herbie
26 Aug 2014, 09:32 PM

* Any thoughts on how to best fit the transfer into a TRIP? (If you think a trip is something you do on drugs, don't feel compelled to reply - :) )
Unless it is a very cheap property the transfer it's unlikely to work as part of a TRIP strategy as it will be over the contribution limits. Income from the property might be ok though.
herbie
26 Aug 2014, 09:32 PM

* Plus any other general (FACTUAL - as opposed to made up bullshit guess type) info aside also appreciated Ta.
Too broad. There is a lot to consider. You need to get good advice.
Edited by barns, 27 Aug 2014, 12:45 AM.
“You Keep Using That Word, I Do Not Think It Means What You Think It Means” - Inigo Montoya
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herbie
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barns
27 Aug 2014, 12:32 AM
No so long as it's structured properly at the start and the SMSF pays stamp duty on the purchase (even if it's a transfer from a related person to the SMSF - commercial property only).

No. Has to be in one go.

Unless it is a very cheap property the transfer it's unlikely to work as part of a TRIP strategy as it will be over the contribution limits. Income from the property might be ok though.

Too broad. There is a lot to consider. You need to get good advice.
Thanks Barns. It's interesting stuff (for those of us who have gotten old enough anyway I guess.)

Also interesting that any unused super potentially has a 'death tax' on it. (I think I'm about to learn some new phrases - things like "recontribution strategy" and "anti-detriment payment" ... :) )

Any suggestions on where (on the internet) I might get info that allows one to answer quite specific questions like my first two? Or is such specific info that one would need to be a member of some sort of industry body to get ready access to info on it?
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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stinkbug
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Is there any merit to the concept of using the SMSF to pay out any loan tied to the property, then receiving the rent (minus costs) as part of your retirement income?

If you've spent 20 years paying off the loan (within the super fund) then the rent should have risen approximately in line with inflation (at least) over that period, so the regular income would be a Good Thing within the context of a super fund.
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herbie
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stinkbug
27 Aug 2014, 01:10 PM
Is there any merit to the concept of using the SMSF to pay out any loan tied to the property, then receiving the rent (minus costs) as part of your retirement income?

If you've spent 20 years paying off the loan (within the super fund) then the rent should have risen approximately in line with inflation (at least) over that period, so the regular income would be a Good Thing within the context of a super fund.
Thanks for the thought SB. But the property was bought with cash (ie debt free) initially within the SMSF anyway.

But just as general info for anyone who might be interested, one little aside I've picked up about property bought within a SMSF using debt, is that it's pretty much just not on to do anything to develop the property apparently. (As opposed to ongoing R&M which is quite expected and accepted.)
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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stinkbug
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herbie
27 Aug 2014, 01:40 PM
Thanks for the thought SB. But the property was bought with cash (ie debt free) initially within the SMSF anyway.

But just as general info for anyone who might be interested, one little aside I've picked up about property bought within a SMSF using debt, is that it's pretty much just not on to do anything to develop the property apparently. (As opposed to ongoing R&M which is quite expected and accepted.)
I've thought about buying a property within my super, but I wouldn't use debt either. I'd rather use some of the cash that's available (following some internal asset sales) to buy a property outright.

Thanks for the extra info. If you post up any other interesting tidbits you find I'd really appreciate it, and I'm sure others would too.
---------------------------------------------------------------

While it's true that those who win never quit, and those who quit never win, those who never win and never quit are idiots.

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barns
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herbie
27 Aug 2014, 11:18 AM
Thanks Barns. It's interesting stuff (for those of us who have gotten old enough anyway I guess.)

Also interesting that any unused super potentially has a 'death tax' on it. (I think I'm about to learn some new phrases - things like "recontribution strategy" and "anti-detriment payment" ... :) )

Any suggestions on where (on the internet) I might get info that allows one to answer quite specific questions like my first two? Or is such specific info that one would need to be a member of some sort of industry body to get ready access to info on it?
If you google the key words to specific questions you will be get some general information.

I don't believe that there is anywhere on the internet that you'll get specific questions answered or sufficient resources in accessible form.

SPAA is the peak industry body. You can check their website. I doubt there is even the sort of information you want available from them to their members.

It sounds trite but this area is very complicated and any general statements are only going to take you so far. You really will need specific advice about your circumstances and objectives. My only recommendation is not to choose an advisor by price. This is important to get right.
“You Keep Using That Word, I Do Not Think It Means What You Think It Means” - Inigo Montoya
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goldbug
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stinkbug
27 Aug 2014, 01:10 PM


If you've spent 20 years paying off the loan (within the super fund) then the rent should have risen approximately in line with inflation (at least) over that period, so the regular income would be a Good Thing within the context of a super fund.
Yes the rent should have risen, it did in the old paradigm. In the old system a $250k house grossed you $250 pw but those days are long gone, at least in the inner suburbs where the homes are well built. If you buy out in the scrub ring of a major city you can still achieve it but the homes are made of recycled toilet rolls and future maintenance would be a killer.
Shadow was hopelessly wrong about the Gold Bull Market.
What else is he wrong about?
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peter fraser
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barns
28 Aug 2014, 08:53 PM
It sounds trite but this area is very complicated and any general statements are only going to take you so far. You really will need specific advice about your circumstances and objectives. My only recommendation is not to choose an advisor by price. This is important to get right.
Good advice. Good to see you back Barns.
Any expressed market opinion is my own and is not to be taken as financial advice
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