SMSF advise....pls

HI,

I am interested in starting a SMSF. Have done some reading on the site but am still confused if I can stat a SMSF and buy graded coins or not. If so, can I buy from members from this site ?? What value do I have to show in the SMSF.

I believe I would also have to get them stored in a locker and get them insured and also get independent valuation ??

Request some advise. Thanks in advance

 

Dunno but KISS with SMSF else paper work will kill ya. Stick to pure bullion coins stored non "in house"*, the 1oz snakes coming up would be perfect addition to a SMSF IMHO, finding someone to sell them to you @ bullion will be a tad tricky

*in house is a definition not a location AFAIK

 

OMG !!!! I did not understand by "KISS with SMSF"

although you tried to explain "in house*"

in house is a definition not a location AFAIK

I must be from stone age time.....so in simple words, I can't buy coins for my SMSF......

 

KISS = Keep It Simple Stooopid
In house AFAIK means your ability to benefit from it while not retired i.e. you could have a mustang kept in your neighbors garage and drive it on the weekends that would be "in house" as in you derive benefit from your investment before retirement.

So "in house" = does not refer to your "house" but the ability to derive pleasure from an Item before retirement.

Caveat = I am leprechaun with no financial knowledge and a lot of Guinness

 

Can I have permission to use your caveat at my business meeting tomorrow?
Very funny.

 

An in-house asset is a loan to, or an investment in, a related party or trust of the superannuation fund.

An asset of the super fund that is leased to a related party is also an in-house asset. You are restricted from lending to, investing in or leasing to a related party of the fund more than 5% of the fund's total assets.

There are some exceptions, including for business real property that is subject to a lease between the fund and a related party of the fund.

Kind Regards
non recourse

 

I wish our government would follow the Kiss rule instead they follow the KISAC rule(Keep it stupid and complicated)

REDBACK

 

Why keep it simple when it can be so much complex?

 

I was re wondering about this myself. I am looking at starting a SMSF and investing in real estate and PM's. As we currently rent, I was hoping it'd possible to buy an investment property in the SMSF and then rent it myself. Going by the above statement it doesn't look like this is possible. Is that correct and are there any other options?

 

Your primary place of residence is just that, a primary place of residence. It is not included in the list of what the ATO and the superannuation Act calls 'real business property'. You're a related party to that property and would be deriving a benefit that is not a business benefit.

If your super fund owned a property that was a commercial/industrial premises and your company leased that property and used that for business purposes, that is allowed.

 

Well that's a bugger. Another option I had in mind was if I bought an investment property in my smsf and a friend did the same, then we rent off each other. By having an agreed and equal rent you would essentially be paying off your own property. Does this provide enough distance from the investment.
If that's okay, who wants to be my friend

 

Only the government and banks are meant to derive pleasure from your investments .

 

That's an innovative idea but it takes a lot of faith that your friend will abide by the agreement and also that you will too. Life changes bring needs that the properties you get may not meet.