Hi All, I am looking for advice in getting my feet back on the property ladder after basically having to start out again. Currently self employed and living in NSW with the company only paying expenses and no real income to speak of. In terms of financial assets I have about 400k in a super fund and nothing else. Could these funds be unlocked to start a property portfolio via a SMSF and if so does anyone have advice as to the best way to go about this? Thanks in advance. TF
Sorry to hear about your business income :/ hopefully it picks up soon. I’m in the process of setting up a SMSF. They are not for everyone though. Make sure you do plenty of research as a lot depends on your end goals/requirements. Redwood Advisory has a lot of information. I could be wrong but from what I can recall you still need serviceability in your personal name in case the smsf goes belly up. Good luck
Tony Fleming | Triumphant Property Group
http://www.triumphantpropertygroup.com.au
Email MeNSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury
Thanks for the heads up TDK
It really depends on the types of properties you’re looking at purchase, residential/commercial etc. There are options which will look primarily within the super structure – but this really comes down to the personal numbers.
When you say your business only covers costs – is this only business costs? How do you support yourself financially?
This is a space which is expanding quite strongly – we’ve recently taken on a financial adviser to start assisting clients with their SMSF’s.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Just looking to explore options Corey so haven’t ruled anything in or out until I get a better understanding of it and thought that putting super to work may be more productive than leaving it where it is.
The business covers all costs to run it but little else at this stage. However, I see this as a short term issue as the business is growing. Other financial costs are covered by meagre savings and partners salary.
That’s quite a common scenario – especially with businesses which are still in their early stages.
It’d be worth sitting down with a financial adviser to understand exactly what you can and cannot do with your super, whether to setup a SMSF etc. If it’s viable you can then look at the finance options for moving forward – if you’re not making contributions into super at the moment the fund will be considered having negligble income so that will be a challenge which needs to be factored.
Certainly not impossible in any case.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Thanks for that Corey
TF – sounds like there is a story there re ‘start again’ – unfortunately a familiar story.
First thing is take your time, your super is your retirement so this is a time to assess your future. If you have chosen property as your destiny – then chat to an accountant re the risks and benefits of a smsf. If it is not right for you – you will know….take your time.
Re borrowing in SMSF, this can be done in conjunction with the SMSF set up – that is check your borrowing power – the way banks assess SMSF loans is not like you normal investment loan….complete this process before you buy. Here is a checklist to help you https://redwoodadvisory.com.au/smsf-loans-borrowing-checklist/
Remember to take your time….there is a few years to come right?
Cheers and to success!
Ivan
Redwood | REDWOOD | SMSF | PROPERTY | FINANCE
http://redwoodadvisory.com.au
Email Me | Phone MeSMSF - PROPERTY INVESTMENT - WEALTH CREATION AND FINANCE SOLUTIONS
Thanks Ivan, appreciate your advice.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
