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SMSF purchase off and lease livestock

Discussion in 'Superannuation, SMSF & Personal Insurance' started by Meyers, 23rd Jan, 2016.

  1. Meyers

    Meyers Willy

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    22nd Jan, 2016
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    Location:
    Gladstone, Qld
    First post, great site.

    Is the SMSF able to purchase and lease breeding stock (cattle). There are livestock leasing options available through rural banks and agents.
    The SMSF's cash would be used. Does this have to be stated in the deed if it is possible. It is a legit option for investment returns in the current climate.
     
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  2. Pauline

    Pauline New Member

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    1st Oct, 2017
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    Location:
    Australia
    Just wondering. If you found out anymore about this we would like to purchase cattle also with our SMSF
     
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  3. Hosko

    Hosko Active Member

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    Victoria
    Hope you got on this, cattle has had a good ride. Not so sure about the next 12 months, only hindsight will tell.....
     
  4. Hosko

    Hosko Active Member

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    Victoria
    Are you already in the industry and looking for effective ways to maximise your wealth or is this an entry point for you? Are you thinking beef or dairy sector? And purchase breeders or store cattle for finishing? It is an area of interest for me will be curious how you are playing it.
    Best of luck with it
     
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  5. JoelVermeer

    JoelVermeer Member

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    9th Sep, 2016
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    Location:
    New South Wales
    Have you checked out SocietyOne's agrilending? This is a peer-to-peer platform for lending secured against cattle and/or sheep reared for meat.

    Without knowing your specific motivations for wanting to own cattle, SocOne's offering seems a much 'cleaner' way of getting exposure to that market. Although I note that it is, at this stage, only available to wholesale investors.

    This is not offered as financial advice. (However I do invest my own money with SocOne, hence I am speaking of that which I know)
     
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  6. AnthonyKing

    AnthonyKing Active Member

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    Sydney NSW
     
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  7. SuperWarehouse

    SuperWarehouse New Member

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    29th Aug, 2010
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    Location:
    Melbourne, VIC
    The first time some-one asked me if an SMSF can invest in cattle I was unsure and asked the question on Linked-In. I saved the response have still have all the quirks regarding this discussion.
    There are certain rules and guidance and an SMSF should adhere to these rules in order to invest. These rules include making an investment for your long term retirement benefit, assets in the name of the SMSF and an investment strategy noting the nature of the asset purchased.
    I have a Fund investing in this asset class. The Trustee describes it as similar to shares. This is an asset he understands, there's different units (cattle) the SMSF owns and there is the potential of capital gains (increase in stock prices) and also income generation (calving).
    The way for a Trustee to minimise risk is to purchase assets you are fimiliar with. If you don't know the share market, don't dabble in shares you don't know. Same goes with cattle. Purchase items you are familiar with, have a good track record and fits your risk profile.
    This is a mouthful of info, but trust this gives you the guidance needed.