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Would you DIY Super or pay full service

  1. DIY SMSF

    42.9%
  2. Full Service SMSF

    57.1%
  1. Property Buddy

    Property Buddy New Member

    Joined:
    18th Aug, 2019
    Posts:
    2
    Location:
    Brisbane
    We're in the process of rolling over our iindustry super to a DIY super (E-super)
    In terms of lenders for residential, they have direct relationships with Liberty Financial,La Trobe Financial and Better Choice

    SMSF Property - Residential Property with Borrowing | ESUPERFUND

    For commercial property, they have 1 SMSF Commercial Lending Specialist
    SMSF Property - Commercial Property with Borrowing | ESUPERFUND

    Has anyone any experience buying property with E-Super or do you have any experience/comment/recommendations?
    Looking forward to hearing from you

    Therese
     
  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,319
    Location:
    Sydney
    I would be very cautious about the decision and the liquidity requirements and why negative gearing should not be used by a SMSF. The fund should positive gear. Esuper is a basic admin service and they then market all sorts of add ons and marketing offers which assist them to make money which may be a independence threat. I also find ex-esuper funds are very poor with compliance and I have concerns about that. They just shrug and ignore the issue and blame the smsf. I have often encountered enquiries from esuper members who feel they are in need of support and they tend be left to their own choices which may not always be good. Several setup funds and borrowed in ways that arent sound financial choices and they later seek to get out of a spiralling problem. Moderate leverage is a good idea. I now dont assist such funds as they generally want a budget service for a complex mess of their own making. Also be aware that for that price they offshore and your financial data, ID and records will be heavily compromised. The thought of your bank account details sitting in a family house of 8+ in the phillipines is real.

    If you are setting up a fund at a suggestion of anyone selling or marketing property. STOP.
     
    Cousinit and Property Buddy like this.
  3. Property Buddy

    Property Buddy New Member

    Joined:
    18th Aug, 2019
    Posts:
    2
    Location:
    Brisbane
    thanks Paul, we received moderate feedback that E-super was sufficient for non-property assets like managed funds/stocks but weren't aware of how it performed with property
     
  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,319
    Location:
    Sydney
    Super is not about buying specific assets - its a complex structure which offers very sigificant difference to other super fund choices. A SMSF gives greater control but also can expose great risk. Chasing a cheap admin solution is the least issue to consider. Strategy, strategy and strategy make a smsf the most advanced legal tax avoidance structure in the country.

    Are you aware that you lose prudential safeguards when you use a SMSF ? eg Your wife can raid the lot and fly off to Malta with a friend and you have no protection. But if someone stole all your funds from sunsuper in a elaborate fraud amongst the management of the fund its insured for loss.
     
    Never giveup likes this.