supersonic4

Hi just looking at our options with what we can do about buying a house,I know you can buy a house using your super fund for investment purposes,But are there any that have the QROPS thingy? Does it have to be one off those self managed funds or do other funds do it .Any one done it,or got any advice?
Thanks Lorri

MartinLuther

If you're going to buy a house with super then you will have to do it with a Self Managed Super Fund (SMSF). You can get your SMSF QROPS approved. Just to note that it would dodgy buying your own house with super. I'm not sure it would be allowed but if it is it would certainly attract some attention.

supersonic4

Thanks Martin L, now how to set one up,who do you see to set one up? Was going to rent the house out if we could buy one till John retires in 5 years. If we wanted to rent it ourselves,we would have to pay the rent as anyone else would.But even if we did want to live there ourselves what would be the problem with it,I am just looking at all sides of it.
Thanks Lorri

MartinLuther

Hello,

You can set them up yourself using something like this website for help. I've not actually used this site so I'm not providing a recommendation. There are other similar sites around.

After a brief look you'll probably agree that it all looks very complicated so alternatively you can get an accountant or IFA to set on up for you.

I had an IFA set one up for me but I've recently dropped them and have just started looking after it myself. This may or may not be a temporary situation. (True to form, I have once again been disappointed by the "the professionals"!)

The main problem with having your own home in super is that the government doesn't want you to get any benefit from the super during the accumulation phase (otherwise it wouldn't be super). Even if you were paying a market rent (to your super) you would be getting benefit from the tax deductability of repairs, etc... Also, from a personal point of view, you don't get the CGT exemption for you own home if it's within super (or any trust).

As I said, I'm not 100% sure if it's allowed or not (it might contravene something called the sole purpose test) but even if it is I think it's not considered a good idea.

supersonic4

Hi thanks for the info,I will have to look into it futher,will let you know how we get on with it,
Thanks Lorri