Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of gags327gags327
    Participant
    @gags327
    Join Date: 2008
    Post Count: 64

    I have around 18k left in my SMSF and was wondering if anyone hd any ideas of what I could do with it, preferably property wise but but dont think I have enough left.

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Wouldn’t be enough to do anything meaningful Property wise – can always build the numbers back up in the SMSF and be able to buy again.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of gags327gags327
    Participant
    @gags327
    Join Date: 2008
    Post Count: 64

    Yes I think you are right. I dont want to just sit it in the bank thou, and a little unsure of where to put it, hoping someone had some great idea haha.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    You mention you have it left so i am assuming you have done something else with the balance.

    If you purchased a property and the loan was set up correctly i would look at placing the funds in the SMSF offset account.

    $18,000 is too little to do anything with it at the moment unless you were thinking about making a non deductible contribution.

    Cheers

    Yours in Finance
    0-40 properties in a decade. Ask me how.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

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

    Hi Gags,

    Common question these days.

    Key thing to remember is that $18k is a good buffer, your decision will be based on your existing investment strategy which I assume will be documented.

    Generally speaking, Depending on your asset mix and stage in life, you can do a few things:
    1. Precious metals – popular at the moment
    2. Depending on % of assets, a Term Deposit (notes rates are extremely low at the moment)
    3. Have fun and buy some shares if you can afford to take the ‘educated’ risk
    4. Refer below

    Depending on your age and exit strategy you can use the $18k as a base to develop a strategy to invest in property. You may or may not have a significant asset base that is liquid which can be used as a strategy to borrow to invest in property. There is no minimum – however you can borrow up to 80% of the purchase price, as you consider this don’t just think cheap property, think quality over quantity so save if needed. Personally, a minimum of $80k is needed, however this will depend on where you choose to buy and of course subject to serviceability of the loan.

    There are still 80% lenders so the ball is still in the SMSF buyers court.

    In summary with limited info $18k may be a small piece of the pie, and you may decide to cut the pie to invest effectively.

    Disclaimer: this is not financial advice and does not take account of your personal circumstances, seek your own professional advice :)

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

    SMSF - PROPERTY INVESTMENT - WEALTH CREATION AND FINANCE SOLUTIONS

    Profile photo of gags327gags327
    Participant
    @gags327
    Join Date: 2008
    Post Count: 64

    Thanks everyone, a non deductible deposit is an option but still probably leaves me short. I will look at something more liquid to invest in until I can get the balance up.

    Profile photo of SiteManagerSiteManager
    Participant
    @sitemanager
    Join Date: 2015
    Post Count: 56

    You mention you have it left so i am assuming you have done something else with the balance.
    If you purchased a property and the loan was set up correctly i would look at placing the funds in the SMSF offset account.
    $18,000 is too little to do anything with it at the moment unless you were thinking about making a non deductible contribution.
    Cheers
    Yours in Finance0-40 properties in a decade. Ask me how.

    @qlds007 So what’s the typical minimum amount for investing in SMSF ?
    Can this investment combined with NRAS as well ?

    SiteManager

    Investing for a better future

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    There is no minimum amount required but realistically you would need circa 80K +.

    Yes there are still lenders that will lend a SMSF to buy a NRAS property but whether it is a good investment is a different matter.

    Cheers

    Yours in Finance
    0-40 properties in a decade. Ask me how.

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me

    100% Investment Finance now available on selected properties. Email us for further information.

Viewing 8 posts - 1 through 8 (of 8 total)

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