Question: I was looking over your list of service providers for SMSFs and noticed the enormous difference in fees for services provided. Can there really be such an enormous variation in the quality of the service provided?
Answer (By Paul Rickard): There can – it really depends on what services you want.
If you have an SMSF with relatively straightforward investments (listed securities, cash, maybe managed funds), then you can usually get a pretty good deal. Things that will lower the price from the provider include:
- Listed securities only
- Using (if they have one) their preferred bank account
- Members in the same phase
- Corporate trustee
The provider’s price will increase if you have:
- Unlisted investments (property, collectibles, private unit trusts)
- Members in different phases
- Pre-existing capital gain tax issues
It’s very much worth shopping around – and consider all the fees (service, transaction, exit, etc.) carefully.
Question 2: Can my family trust buy a residential investment property with my super fund as tenants-in-common? Can my family trust finance its share through a loan, while my super fund pays for its share in cash?
Answer 2 (By Tony Negline): Yes this can be done, as long as the property purchased isn’t used for security over the loan. There should also be an owners’ agreement detailing responsibilities and actions and what happens when either party wants to exit the investment. Finally, the property can’t be rented to relatives or related parties.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.
