All Topics / Help Needed! / When can you start thinking buying property from your superfund?

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  • Profile photo of NanNan
    Join Date: 2015
    Post Count: 26

    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?

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

    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.


    Yours in Finance

    Richard Taylor | Australia's leading private lender

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

    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
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of D.T.D.T.
    Join Date: 2014
    Post Count: 128

    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
    Email Me | Phone Me

    Adelaide Property Management - whole Adelaide metro

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

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