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SMSF to invest in propertybarney2803 [31 Posts]  I have a few questions about using SMSF to invest in property. I have been researching this issue for a while and had much pleasure in reading the article in the latest edition of "your investment property" but still have some unanswered questions.1. Why does the article say you need $120k to make it cost effective? Isnt it the same as other purchases and you need to calcualte whether there is enough in yuor super and with yuor contributions to support the loan then that is all? 2. If i want to buy a property outright, say a block of land in a regoinal area, then cant i jsut use the funds in my SMSF for an outright purchase? Does anyone have any more good and thorough info i coudl read on this topic in addition to the article written by Justin from the deploygroup in the magazine? Thanks,Barney. Life is like a game of cards..................... play your hand well. Barney Jones "Life is like a game of cards. Play your hand well!" ................... think about it! barney2803 [31 Posts] oops! i forgot the auto signature. Sorry folks. Barney Jones "Life is like a game of cards. Play your hand well!" ................... think about it!   Terryw [6279 Posts]  I haven't read the article, but it is now get to SMSF to borrow up to 85% LVR, so you probably need even less money in your super now to enable you to buy property. Terryw Qlds007 [3833 Posts]  Barney Nothing to stop you paying cash for a block of land using funds from your SMSF but be aware you are unable to do a geared construction loan under a SMSF due to the legislative restrictions. Cheers Richard Taylor barney2803 [31 Posts] thanks for the advice guys. The only reason my simple mind can figure the $120k is needed in your super to make it cost effective is maybe due to the average price of an investment property in aus. If i have $40k in super, is there any reason why i couldnt spend $30k on the deposit, $10k on fees etc, then borrow at 80% for a $150k property (yes i know a $150k property is rare but there is plenty of options). With the rental and my future 9% compulsary super contributions, i can support the loan until it becomes cashflow positive, then purchase another property and so on and so on. As far as you know, is this a feasible option? Barney Jones "Life is like a game of cards. Play your hand well!" ................... think about it! Terryw [6279 Posts] sounds feasible to me - with limited knowledge of super. Terryw Chris-Syd [75 Posts]  From my understanding the quote the amount because of the fees to setup and run a SMSF. I would say that the investment would have to be netural to positively geared to be able to do this thru super fund. Seek out so advise from a certified finanical planner or accountant. ------ All post are IMHO. |
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