What are you doing with your SMSF ?

Hi Adrian, am I right in assuming that your SMSF set up was audited by the ATO? they have increased surveillance on set ups and during this time no rollovers can be made. It is painful. Let me know if the assumption is right?

Cheers Ivan

 

100%, the audit rate must be pretty high atm because 3 other guys in my office got the same treatment. Funnily enough the guy in our office who is RG146 qualified failed his phone interview.

 

The ATO is general auditing when a member of the SMSF has an outstanding tax obligation, this may include a nil return (RNN) that has not been lodged. We have had 3 audits in the last 3 months, we provide them with the SMSF Establishment folders including ALL documents, plus rollovers and bank account. They then interview the members and ask a heap of questions mainly around the sole purpose test. Their purpose is lodge your o/s tax and sort it out before you even bother being a member of a smsf....i.e character test. You fail and the ABN will be removed. During the time of the audit, ABN details will be withheld and you cannot rollover or progress with the fund....this will be particularly difficult for people who have signed contracts for property.

Cheers Ivan

 

Can I ask who you invested with? I'm looking at OpenCorp, with their development fund, NOT resi house and land. Has anyone dealt with OpenCorp on development funds?

 

What's making you look at their Development Funds at the moment? My understanding is that their Hawthorn East development fund has closed or is closing in a manner of days. It will be fully subscribed, so be prepared for a potential scale back...

 

Been following the guy's for over a year, WODS, book and went to a seminar a couple of months ago. Was never interested in their products, just the info they were providing, until the property fund came up. Haven't set up a SMSF, just looking into it at the moment, but was thinking of investing part of the fund into something like their property fund. Reason for asking what fund you invested in and what your thought of the OpenCorp was. At the seminar, 95% was on their H&L and 5% on the property fund, they said that they are constantly releasing funds, so if you miss out on one there would be another in the pipeline.

Would like to hear your experience with property funds.

 

I'm invested in both Folkestone (a development in Knoxfield, VIC, that is a blend of commercial/industrial/retail), longer horizon with distributions in 2020, and OpenCorp's Hawthorn East project. Shorter horizon with distributions expected second half 2018. I invested in both because of their track records and familiarity with their business and directors.

 

So what’s every one doing with their SMSF these days?

Any good SMSF property loans available with an off-set?

 

When my solicitor drew up my commercial lease agreement he said you should have 6 months lease payments in advance. You can also have people knocking on your door wanting to lease your property. It is these people that determine the value of the site. The high LVRs required , can be good it is what enables higher rents to be obtained, as it makes it uneconomic for business to have capital tied up in purchasing a premise. Also in the current climate commercial loans can be cheaper than residential. My commercial loan is much cheaper @ 4.57 than the residential @ 5.49. You can also have less vacancies with commercial as often long leases are wanted. You can get leases for more than 3years and forget about it, just check every 6 months the next 6 months has been paid.

 

My SMSF is pretty simple. It includes myself and my partner, our money is invested approximately 50-50 between:

- EGP Capital - EGP Capital - If we don't deliver, you don't pay
- Castlereagh Equity (CE) - http://castlereaghequity.com.au/

The goal is to get as much money as possible into EGP before it hard closes, then likewise with CE. After that, I'll probably look for some LICs, etc.

 

All very interesting stuff with the different approaches and attitudes.

My thoughts are not What are you doing with your SMSF but Do you know what you are doing with a SMSF?

When I'm in charge, before anyone even gets near a FP, Accountant or Buyers Agent, I'll lock them in a room and get legals in, who are well versed in Super legislation, and give 'em full bore on their obligations as Trustees and the penalties which apply if those obligations are breached.

If, ashen faced, they still wish to proceed with an SMSF, only then would I let them loose.