Price and inclusions
Start with the actual land and build contracts. List the fixed amounts, deposit dates, progress payments, inclusions, exclusions and any conditions under which a variation may be charged. A single package headline may not answer what is paid at each stage or by which entity. Read the source guidance.
Duty and conveyancing
In Victoria, land transfer duty is generally calculated on dutiable value, often the price or market value if higher. The State Revenue Office calculator gives an estimate and explicitly excludes some concessions. A solicitor or conveyancer should assess duty and any concession on the real documents; do not assume an owner-occupier concession applies to an SMSF rental purchase.
Build costs
Add conveyancing and legal work, inspections, insurance and any site or specification costs the contracts leave outside the fixed price. For a build, ask what triggers variations and who pays for service connections, landscaping, fencing and post-handover work. These are questions for the actual offer, not a universal percentage.
Keep three cost conversations separate
Price, duty, conveyancing, inspections and contract exclusions.
Rates, insurance, repairs, management and vacancy.
Administration, accounts, audit and professional advice.
Running property costs
Holding the property brings rates, insurance, repairs, property management and possible vacancy. Moneysmart lists these as costs of SMSF property. Rent is income only when received; an appraisal is an estimate and is not a guarantee that a tenant will be found at that amount.
Running fund costs
The fund itself has costs: establishment and professional advice if used, administration, accounts, tax work, an annual approved auditor and the ATO supervisory levy. Ask each provider for a written scope and fee. Ask Bell Morgan for its written remuneration disclosure, including any buyer fee and relevant referral relationships. Read the fee questions to ask.
Sources & review
Prepared by Adrian Chenh. These sources inform the general information above.
- Victorian SRO duty explanation
- SRO calculator
- Moneysmart SMSFs and property
- ATO SMSF expenses, audit and levy
- Consumer Affairs Victoria building contracts
General information only. Discuss your circumstances and any proposed arrangement with licensed financial, tax and legal advisers.
