How much money should I have in Super before it makes sense to establish my own SMSF? This is a question which we’re often asked and which we often see discussed in SMSF circles. The ATO has provided a suggested figure of around 150k. Some advisers will suggest that a figure of $250-500k is an … [Read more...] about How much money do I need in Super before it makes sense to setup my own SMSF?
If your SMSF is not borrowing money to purchase property there is very little restriction on the type of property it can buy - as long as there is sound investment logic behind the purchase. If you’re SMSF does need to borrow to make the purchase - which for most people will be the case - there are … [Read more...] about What type of properties can an SMSF purchase?
Because SMSF loans can be more difficult to service than regular loans, many people find that the purchasing power, that is, how much they can borrow to purchase property, of their SMSF is less than they might have hoped or expected. Today we look at a typical scenario where this occurs and what you … [Read more...] about Boosting your SMSFs purchasing capacity
Why are SMSFs such a popular way to invest in property. Many people already understand or have experienced for themselves that property investment can be great way to build wealth. It’s also widely recognised that having the ability to borrow money for investment is a terrific strategy for … [Read more...] about Why SMSFs are such a popular vehicle for property investment
Property valuation is supposed to be a science, using facts, mostly comparable sales in this case, to ascertain the value of a property which is offered as a security for a loan to a lender. How much a specific security is worth is going to define how much the said lender is willing to lend against … [Read more...] about Overcoming The Perils of Bank Valuations
While Super can be a great investment vehicle - it’s not necessarily the right choice for everyone. One of the first and most common questions we get asked by clients looking for SMSF Loans is "Do I have enough money in Super to invest in property?" What's less often discussed are the reasons why … [Read more...] about The Pros & Cons of Using Super for Property Investment
SMSF Liquidity requirements are a relatively new feature of most SMSF loans that can reduce your SMSF's borrowing capacity. To understand how liquidity requirements work - and how you can reduce the impact on your borrowing capacity - we'll start by defining just what 'liquidity' means. In terms of … [Read more...] about SMSF Liquidity Requirements (and how to reduce their impact on borrowing capacity)
The simple answer is yes, SMSFs are allowed to invest in all manners of collectibles including but not limited to cars and other motor vehicles. The list would also include things like jewelry, art, stamps, wine and more… The main challenge with these investments is to ensure that the SMSF owning … [Read more...] about Can my SMSF purchase a collectable car?
The short answer is that yes, you can indeed buy an investment property with your super. In order to do so, the first thing that you will need is to set up a Self Managed Super Fund (SMSF) which is the only vehicle which will allow you to use your superannuation to purchase a direct … [Read more...] about Can I Use My Super To Buy An Investment Property
Today we look at how your SMSF structure works once you’re ready to make an investment property purchase using a an SMSF Loan given to your fund. Generally speaking, your fund can borrow up to 80% of the value of a residential property. Super contributions and investment property rental income flow … [Read more...] about Adding a property to your SMSF with an SMSF Loan