When can you start thinking buying property from your superfund?

Viewing 4 posts - 1 through 4 (of 4 total)

Nan
Participant
@nano
Join Date: 2015
Post Count: 26
May 23, 2016 - 11:22 am
I heard a lot of people taking about using superfund to buy property.
When can we start thinking about that? Do you have to have a lot of superfund?
Richard Taylor
Participant
@qlds007
Join Date: 2003
Post Count: 12,024
May 23, 2016 - 3:19 pm
Hi Nan
Financing a purchase inside your SMSF has certainly got a lot harder than it used due to the minimum balance / cash asset requirements.
Whilst still doable many lenders require you to have a minimum of 200K in the fund before they will look at the deal.
There are certainly no legal requirements as to what minimum balance you need to establish a SMSF but as long as you balance up the costs of establishment and maintenance against flexibility and the choice of investment etc.
Couple of private lenders in the market doing fairly good deals for the smaller loan balances.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Corey Batt
Participant
@cjaysa
Join Date: 2012
Post Count: 1,010
May 23, 2016 - 5:07 pm
There’s no legal restriction, but there’s two main factors which will decide whether it’s the right time to setup a SMSF:
*the practicality – whether the benefits will outweigh the upfront and ongoing costs, this is usually the case as the balance increases
*lender policy – whether you have the ability to meet the lender policy requirements to borrow
This is a VERY common conversation we have with clients, to the point where our financial adviser will review whether it is viable at this time to setup their SMSF, and if not what steps are needed to get to the point of being able to build their balance up to start their own fund.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone Me
Investment Focused Finance Strategist - servicing Australia-wide
D.T.
Participant
@dtraeger
Join Date: 2014
Post Count: 128
May 23, 2016 - 9:17 pm
Precision Private Wealth is a financial planning / advice firm who does very well in this space. Highly recommend giving them a call to go through the steps involved with setting it up properly, getting loans to buy property in it, getting the right insurances in it, etc
D.T. | DT Property Management
http://www.dtproperty.com.au
Email Me | Phone Me
Adelaide Property Management - whole Adelaide metro