Use Your Super To Invest In Property

[megsaletta]

Has anyone used there Super to invest in Property. You can use your Super to borrow and invest in Property. Everyone is saying you need alot in your Super to be able to do this? Any advice will help.

[Rob Williams]

Have you read the Ed Chan book on the subject? Highly recommended.
Depending on who you ask, the super balance could be anywhere from about $80k upward to make it worthwhile. Others say $100k plus.
YMMV (Your Mileage May Vary)

[JamesGG]

Hiya,

Mike from Guardian Partners has put together some very good information about this. Link on this forum: here.

Cheers

James.

[cegosling]

Hi, My husband I I have just pulled out our super (only $80k) and borrowed to buy an IP in Ballarat, p/p $170k. NAB lends to 70%, so we anticipate residual loan will be paid out in 10 yrs or less. On this basis our super fund will then have an asset worth say $250k (maybe more but conservative view) , an amount which we couldn't have put away ourselves whilst raising a family on 1 wage. The + is if we then sell this property, there is no capital gains, and we can then use the equity to borrow for another property and so on. I know there are +'s & -'s for self funded super, but this seemed the best way to get ahead for us.

[lisag]

thinking of doing this myself (& hubby), have been told as well, around $80 - 100K to start up with. You need to find experienced persons/ company to help with the start up as I believe there has been many incorrect operations of the SMSF re: investing in property. ATO website has some usful info.
My husband and I have over 30 yrs of work between us and in SF contributed by the Employer we only have around $80K. Doest look that great!!!

[Jamie_D]

Originally Posted by megsaletta

Has anyone used there Super to invest in Property. You can use your Super to borrow and invest in Property. Everyone is saying you need alot in your Super to be able to do this? Any advice will help.

Hi Megsaletta

Borrowing and buying against SMSF is becoming more popular. Great tax benefits depending on your age etc.

It is best to sit down with a FP and accountant to work out the most appropriate strategy. Everyones situation is different.

You will need to also set up a bare trust which complies with the ATO and find a bank to fund the loan - therefore find a MB that has had some experience in lending against SMSF.

It's definitely worth a shot as your super probably isn't performing how you would like at the moment.

Huge potential in the Aust market and will become increasingly popular in the next few years with the baby boomers retiring on huge super amounts.

I have helped a few people out already and have a great FP/Acc to assist you also. He holds seminars on this topic regularly.

Good Luck

[SOULFLY3]

Is it worth doing this for around 15k ? and if so who does one go about doing it this way?
I was thinking of taking the 15k out and investing it into another ip ?

[Rob Williams]

Originally Posted by SOULFLY3

Is it worth doing this for around 15k ? and if so who does one go about doing it this way?
I was thinking of taking the 15k out and investing it into another ip ?

You might struggle with $15k. From what I've seen, lenders have a minimum lend for SMSF IP's and a minimum property value, so at $15k I don't think it would make the cut.

[SOULFLY3]

ok thanks so theres no way of accessing the money and taking it out of super at all?

[csc]

Originally Posted by JamesGG

Hiya,

Mike from Guardian Partners has put together some very good information about this. Link on this forum: here.

Cheers

James.

yes i highly recommend this read also!

i dont have super ,yse;f but my wife is considering this venture when its right to buy into the market again...

good luck...using your super will open up a whole new world, you will never want to go back to the old ways of watching shares go up and down again......long term shares are great but russian roulette if they will be any good when you retire...like many who were unlucky to lose big time last 12 mths on retirement...my father in law is out of pocket nearly a mill currently,,,mind you its a paper loss,,,good luck, read that thread!

[craigb]

TURN MY SUPER in to an IP cool! ihave 10k no 8k no, thats 5k hang on 4k ,
sorry !
Those shares are mooving a bit today?

OK then 4k where do i sighn up then?

[csc]

Originally Posted by craigb

TURN MY SUPER in to an IP cool! ihave 10k no 8k no, thats 5k hang on 4k ,
sorry !
Those shares are mooving a bit today?

OK then 4k where do i sighn up then?

buy quality art then...not so fickle as shares.....ps: i think after the next few days your share investment will be worth 2k...)

[craigb]

Originally Posted by csc

buy quality art then...not so fickle as shares.....ps: i think after the next few days your share investment will be worth 2k...)

me too! lucky to have nice art already, 1 x hart, 1x david hart, 1x kendel 1xpat harry, 2x NI NI otter, we stay at cheap hotels on our holidays u/know 115 night but we always spent at least 3k on somthing veerryy nice like those above.
Cheers.

[BayView]

Originally Posted by csc

buy quality art then...not so fickle as shares.....

What is the rental yield and on-paper deductions on art?

[JamesGG]

Rental yield is often quite good. Will likely come down to the particular artwork and who you rent it to, I guess. I think Bluecard (?) has posted about doing this in another thread somewhere.

On-paper deductions are a little less relevant in super given the brackets involved, but I can see what you're getting at there.