NSW Where to buy a unit for under $300K for SMSF

Discussion in 'Where to Buy' started by HouseData, 8th Aug, 2017.

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  1. HouseData

    HouseData Well-Known Member

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    Hi everyone,

    My partner and I have about $230K in super in total, we are thinking to buy a property under SMSF together. We don't want to borrow much under super as it will affect our personal borrowing capacity.

    We want to buy a unit preferably a townhouse or villa in NSW where we can live in there when we reach 65. Btw, I read that we cannot stay in the investment property under the SMSF even for 1 weekend, but I presume we can stay there after we reach our preservation age. Is this correct?

    My preference is a coastal suburb in regional NSW but I did a quick search on RE and couldn't find many choices. Does anyone know where I can get a 2BR unit for $250-$300K along the coastline of NSW? if not, our next preference is QLD.

    I'm thinking to buy during Christmas period and may be able to get some bargain. Any advice on locations and general tips about setting up SMSF to buy a property to live in when we retire, would be much appreciated
    Thanks

    HouseData
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Do you think unleveraged property would be a good idea if it was outside of super?
     
  3. HouseData

    HouseData Well-Known Member

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    Yeah, I know not so good. But I'm hoping to find a low-priced property but with also decent potential capital growth in 25-30 years.
     
  4. eletronic_exp0430

    eletronic_exp0430 Well-Known Member

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    In that time frame you can close your eyes and just pick any place you like.
     
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  5. Scott No Mates

    Scott No Mates Well-Known Member

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    Cords Harbour, Nelson Bay & surrounds, Merimbula, Eden.

    Are you able to live in a SMSF dwelling post retirement phase?
     
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  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    No
     
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  7. Ross Forrester

    Ross Forrester Well-Known Member

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    Go through the numbers regarding the cost of doing this before you start.

    A SMSF is an expensive structure for acquiring assets and your balance is not that high.

    And you have all of your superannuation fund in one asset. That makes things hard if you had a major repair bill or something.
     
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  8. Scott No Mates

    Scott No Mates Well-Known Member

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    That puts paid to the op's reason. Most discussion on the topic has always been whether you could derive a benefit while in accumulation mode.
     
  9. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    They could buy it from the SMSF though or an inspecie transfer.
     
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  10. JohnPropChat

    JohnPropChat Well-Known Member

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    Would that be similar to a lump-sum withdrawal after age 65?
     
  11. JohnPropChat

    JohnPropChat Well-Known Member

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    If it's a farm-house-business then can live in it right away.
     
  12. JohnPropChat

    JohnPropChat Well-Known Member

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    @HouseData - Yes it affects servicing outside super but if your strategy is a simple buy and hold for the long term then it's quite tax effective inside super. So leverage is not necessarily a bad thing even for property inside super. Run some numbers and get proper advice.
     
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  13. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Under very strict circumstances it might be possible.
     
  14. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes
     
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  15. Phil_22

    Phil_22 Well-Known Member

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    Ignoring the SMSF issue for a moment id have a look at the nice little coastal villages close to Port Macquarie such as Lake Cathie, North Haven or Bonny Hills.

    Cheers
     
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  16. JohnPropChat

    JohnPropChat Well-Known Member

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    I would avoid regional towns. Stick to capital cities, more so cause its your retirement fund. When it's time you can always sell that and buy acreage/lifestyle wherever you want.
     
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  17. HouseData

    HouseData Well-Known Member

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    That's not a bad strategy, I'll consider it. But the problem is my fund is quite small so I cannot afford capital cities, perhaps Adelaide or Hobart?

    A bit disappointing to learn that we cannot live in SMSF dwelling post retirement phase.

    Thanks all for the advice
     
  18. HouseData

    HouseData Well-Known Member

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    I know SMSF is expensive to set up, I'm still researching to find who should I approach to find out the actual cost and set up. Do you know any SMSF organisations that you would recommend?

    Every time I looked at the returns of my current super fund I wanted to set up a SMSF and buy a property inside it because the returns on stocks over the past 6 years are so bad, it can be in negative of thousands of dollars every 6 months, got positive only for a few terms.
     
  19. HouseData

    HouseData Well-Known Member

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    Hi Terry_w,
    Do we need to pay both stamp duty and capital gain tax if we buy the property back from the SMSF?

    Thanks
     
  20. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    it depends. You wouldn't pay CGT as that is paid by the seller.
     

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