All Topics / Help Needed! / Can we buy carpark using SMSF?

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  • Profile photo of the_kurniawansthe_kurniawans
    Participant
    @the_kurniawans
    Join Date: 2005
    Post Count: 47

    Dear All,

    As the title suggests, just wondering, can we buy carpark(s) using SMSF?

    Thank you,

    Ricky

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    Never mind the question of “can you”. Why on earth would you want to?

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of the_kurniawansthe_kurniawans
    Participant
    @the_kurniawans
    Join Date: 2005
    Post Count: 47

    Because that’s all that I can afford?

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    Were you planning to pay cash for it? If so, sounds like you have about $50k. You can most certainly do other things, including acquiring property, with $50k.

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of the_kurniawansthe_kurniawans
    Participant
    @the_kurniawans
    Join Date: 2005
    Post Count: 47

    I have about 100k in Super, and I plan to acquire carpark(s) without owing anything using SMSF. How does this sound?

    Profile photo of RedwoodRedwood
    Participant
    @redwood
    Join Date: 2013
    Post Count: 340

    KURN, yes you can, I actually done a TV interview on the topic (the Sydney Airport car parks). Car parks are a popular investment for SMSFs and its seen as a cheap way to enter the property market – that is a 12 sq mt piece of concrete that earns good yield over 5 years, but you need to consider other costs such as city levies, and the possibility that the space will be vacant. Don’t be blinded by ‘net’ yield, think what else you can do with $100k, I have a heap of strategies that our clients use to enter the property market with a similar balance.

    Hope that helps
    Cheers, Ivan

    Redwood | REDWOOD | SMSF | PROPERTY | FINANCE
    http://redwoodadvisory.com.au
    Email Me | Phone Me

    SMSF - PROPERTY INVESTMENT - WEALTH CREATION AND FINANCE SOLUTIONS

    Profile photo of wilko1wilko1
    Participant
    @wilko1
    Join Date: 2010
    Post Count: 510

    I don’t mind buying carparks.

    As long as your buying the entire carpark.

    But no a single carpark for a investment. Poor choice in my opinion. A limited recourse loan and 100k would get you into a 300-400k property easily, which would be a better investment.

    Profile photo of the_kurniawansthe_kurniawans
    Participant
    @the_kurniawans
    Join Date: 2005
    Post Count: 47

    Thank you Redwood and wilko1. Yes, I can get a 300-400k property, however, what if I do not have enough buffer and what if things happen to us like getting hit by bus or we lose our job?

    Profile photo of ShaunShaun
    Participant
    @shaunspawn
    Join Date: 2014
    Post Count: 1
    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    You could look at buying a slightly cheaper property, thereby leaving a buffer of perhaps $20k in the smsf. This would enable it to weather the storm if you were out of work for a while. If you get hit by a bus you’re either injured or no longer with us. You have death & tpd insurance for this, which covers paying out the mortgagee.

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of Jimmy86Jimmy86
    Participant
    @jimmy86
    Join Date: 2013
    Post Count: 46

    Just because You can, doesn’t mean you should, or it will suit your retirement goals…

    When investing in SMSF, you need to evaluate a lot more factors than just your super balance. for instance:
    * your age/years to retirement?
    * your risk profile/liquidity needs
    * your current and projected income / job security
    and a fair few other factors.

    You should speak to a financial adviser before making any decisions. especially with ‘special investments’.

    :)

    Jimmy86 | Future Assist SMSF Specialists - Bris | Melb | Syd
    http://www.futureassist.com.au/setupansmsf
    Phone Me

    Self-managed super specialist administrators and advisers

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