As the title suggests, just wondering, can we buy carpark(s) using SMSF?
Because that’s all that I can afford?
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.
I have about 100k in Super, and I plan to acquire carpark(s) without owing anything using SMSF. How does this sound?RedwoodParticipant@redwoodJoin Date: 2013Post 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, Ivanwilko1Participant@wilko1Join Date: 2010Post 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.
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?ShaunParticipant@shaunspawnJoin Date: 2014Post Count: 1
I was wondering the same thing. Looks like you can, see this post: https://www.propertyinvesting.com/topic/4390790-car-park-space-as-an-investment/
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.Jimmy86Participant@jimmy86Join Date: 2013Post 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’.