Property through Super - how much do you need?

Hi Guys
Just wondering how much super do I need to buy a property? e.g with $ 100K super can I buy an IP? Who is the best in the market to help me in this. Honestly speaking I don't have the time to do all the research hence I may need to rely on someone to do the work for me.
Your comments would be most appreciated. ​

 

To get a loan a super fund will need around 35% deposit at least.

You also need to think if it is appropriate for the trustee to buy property.

 

Just remember that, if you get someone else to do the research for you and they get it wrong, any repercussions will fall on you.
Marg

 

I think 100k might be abit too little for property investment. I have been advised that 200k is the turning point that justifies the yearly expenses and the setup cost. You will also need 10% liquidity in the form of cash or shares in addition to paying 30-40% deposit.
For us, we needed 270k to purchase a 620k property under smsf.

 

You need a yearly audit need SMSF end of year financials $4,000per annum I'm. Administration coats
(your Accounting firm is happy and hence most push SMSF)

The SMSF BORROWING is considered commercial even when buying residential.
So your. Borrowing rate is higher. 5.49%-5.99%


We started with $200k two years ago with my wife and purchased $550k property.

Due to. Cost and fees we would have been better off to keep our money in our super funds.

In my opinion $100k is too little the fees will it you up on a $500k purchase.


I think $250k for Leveraged property purchase should be minimal.

 

I am not an accountant but $4,000 sounds like an awful lot for auditing. Even the audit and accounting fees together would be much less for a fund that only have one property and a few shares.

And SMSF loans are of 2 kinds - commercial or residential. What you may mean is that the residential rates are high like commercial loans (and the fees)

 

I got quotes from 2 firms re audit and SMSF all were $3-4k

If you use Commonwealth Bank the team that deals with you is Business/Commercial team and hence your. Rate is 5.5-6%.even though you are purchasing residential.

If you are. Just buying and IP P&I would be 4.3% or so. Institutions treat smsf differently due to be a non recourse loan.

 

Perhaps your SMSF's assets and investments are more complex than the average one - Get another quote - try Redwood from the forum @Redwood

You might deal with the commercial section but there is a distinction between residential and commercial loans. But the rates are much higher than residential - for all banks.