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Kerry B.
Kerry B.
Carlton, VIC
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My wife and I have our own separate superannuation. If we set up an SMSF can our individual super be rolled into the one SMSF so we can buy 2 or 3 investment properties?

7 months ago

Responses

Hi Kerry,

Yes, a SMSF can pool up to 4 members benefits and then use them collectively for investment purposes. Quite commonly though it is a husband and wife with their benefits together in a SMSF.

Cheers

Glenn

Comments

Hi Glenn, that's great news, thank you

Regards
Kerry

Hi Kerry,

Just to be clear, I wouldn't recommend it. Going from what is probably an extremely diversified portfolio that you and your wife currently have to a few properties, isn't something I would suggest. Plus, as Brendan has mentioned, a lot of other negatives and costs with SMSFs, not forgetting what would be a large amount of stamp duty.

This blog from another advice firm would be an interesting and relevant read for you. https://www.mfg.com.au/blog/smsf-losses-highlight-advice-gap/

It might be 'unpopular opinion' but you can achieve just as good investment outcomes, if not better, with a low cost retail superannuation.

Cheers

Glenn

yup. sure can, but SMSF is fraught with traps, so make sure you get yourself a good qualified and experienced accountant to help you out.
The penalties for doing the wrong thing can be EXTREMELY HIGH!!! so do your homework first and find out what your obligations are and what things you MUST do when you are the trustee of a SMSF.
And get a few quotes: some firms want an arm and leg just to set the thing up, and some want to sign you up to an ongoing commitment and entice you with a years accounting and audit free.
Prices vary widely: you can pay $500 to set one up. or you can pay $15000 for the same thing.
Also annual fees will depend on what you are doing, what investments are, the number of transactions etc etc etc. Some SMSF annual fees are as low as $400, some pay $25,000 a year. Everything depends on what you need and what is going on.
At the end of the day you are probably assuming responsibility for the biggest asset you will ever manage. Dont treat it like a hobby. Be VERY careful with what you do with it: your whole retirement depends on you not making mistakes.

good luck
bc

Hi Kerry,

As Glenn and Brendan have said, this is definitely possible but it is also highly regulated. An SMSF loan is set up as a “non recourse” loan which means the lender can’t take any other assets from your Super fund if it goes bad. That means more risk for the lender and they charge much more for these loans in fees and interest.
I would suggest you get in front of a trusted financial adviser who will map out the pro’s and con’s of SMSF and not just one who sees the $5000 per year in fees they will charge you to administer it!
I am more than happy to discuss and assist you with the lending aspect and to give you some further information, please don’t hesitate to get in touch
Kind regards
Scott

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