Join our investing community

smsf

Discussion in 'Introductions' started by RSB2013, 15th May, 2013.

  1. RSB2013

    RSB2013 New Member

    Joined:
    15th May, 2013
    Posts:
    1
    Location:
    Sydney NSW
    Hi members
    I am thinking of setting up smsf and buy property. should i see accountant or financial planner?
    What is your experience.
    rsb2013
     
  2. GregR

    GregR Reid Consultants

    Joined:
    13th Jul, 2009
    Posts:
    273
    Location:
    Berwick Vic
    A simple question with no easy answer.
    From my perspective both have their limitations as a general view.

    FP's in theory know insurance and some know managed funds and perhaps shares and they are needed to sign off on the investment strategy of a SMSF for most lenders before they approve a property loan within a SMSF. There are not many FP's who know squat diddley about residential property or the associated loan involved nor do many know much about tax.

    Accountants can establish a SMSF, generally using another provider but they cannot provide the advice re investment strategy etc. It is also rare they know much on residential property and how it fits into your own strategy that you need. Questions such as expected growth to achieve retirement goals, rent yield, purchase price to suit your funds available, LVR etc. You then need to consider the risk insurance requirements. They do and can provide the accounting and audit needs.

    Find a professional who will work with you and ask the questions to make sure a SMSF is the appropriate strategy for you and whether a property within a SMSF will achieve your own retirement goals. It may be a combination of professionals you will need.

    Good luck with it.
    Greg
     
  3. Terryw

    Terryw Well-Known Member

    Joined:
    9th Jun, 2006
    Posts:
    653
    Location:
    Sydney
    You should really see a lawyer. SMSFs are trusts and the set up of a trust entails getting legal advice. Only lawyers can give legal advice.