Starting a SMSF early

You can do as you wish as long as your trust deed allows you to and your investment strategy details key points around consideration of diversification, the majority of smsfs are concentrated, issue is documenting the strategy and consideration of diversification.

Cheers Ivan

 

Cheers Ivan, is it incorrect or out of my jursidiction?

 

Both, unfortunately. Not trying to be rude, more helpful. ASIC monitors this stuff hence we are all careful what we write....Cheers Ivan

 

Noted and thanks for the concern, its appreciated.

 

ASIC seem to let a lot of people give financial advice without licence, but sometimes they do go after a very very small number. Look at all the bloggers and podcasters out there now..

 

@TheDon Having an SMSF with $30k is not wise unless you have a deal that is a sure thing and we all know how those go ...

Many lenders even have minimum borrowing, it's best to be your own bank and lend to your SMSF. Again complex area that needs good advice - which costs $$ as well

It's good that you are exploring this so stick around, ask lots of questions, learn and then reassess in 6 months.

 

ASIC and the ATO are focussed on forum and chats that address super esp smsfs. One well known individual is really pushing boundaries by comparing providers incl industry funds without a afsl and doing so as a form of product advice to a huge audience. Just because he has some books - His recent actions are like "My Budget" who were heavily censured for offerring financial services without a license. PC and whirlpool + others have been bought up. I was recently contacted by ASIC who had "silent-shopped" as a test. I had refused to assist without financial advice due to low balance concerns. They were fine with that. It shows they do monitor.

I dont see concerns on PC but whirlpool is a shocker. I know Vanguard has also been subject to a lot of supression as the talk hinders their license approvals. Its why Vanguards own site is VERY silent. The concern is many may go "all in" as that what so many say they will do on forums.

Some recernt frauds relied on the blog space to inflitrate and build trust.

 

Very low balance for setting up a SMSF and even worse if your aim is to have a property in the SMSF. Please remember that a property will generally have unexpected expenses which the SMSF will need to be prepared to pay when needed. As such you need a substantial float to cover these expenses. With only one property I would have no less that $15 -20k to cover the unexpected. Thus your whole balance would be needed just to cover the unexpected.

You also need to consider the standard expenses as the capital gains you refer to does not translate to money in the bank.

Regardless you can run a smsf fairly cheaply these days as long as you don't need any advice. We have run our SMSF since around 1994 and I think my initial balance was something like $100K

Used to pay $3+k per annum with my accountant even though I did all the work.

In recent years a number of SMSF specialist accounting services companies have sprung up who provide full record keeping services and basic advice related to the accounting for much less than accountants are charging.

When I changed over from my accountant to super accounting in 2011 my new cost dropped to just over $1k. This is now costing just under $2k which will include my move over to a pension phase.

All my quoted costs exclude life insurance costs.

A quick search provides a host of competing SMSF companies.

 

No. You might be able to get a tiny studio apartment for that (under 50sqm so you'd have issues with financing) but not a 2 br unit within 10km.

 

How many properties do you have in Adelaide?

 

A couple. I live and work in Adelaide. Properties that you described simply don't exist.