What type of property for smsf property investment

No if the property is held for > 365 days the concessionary CGT is 10% whilst in Accumulation phase or Nil in Pension phase.

 

Just be careful. Several thousand NRAS allocations were recently approved for various developments around the country. These are Round 4 allocations that have to be delivered by June 30,2016 so they are mainly on Off The Plan developments due for completion in early-mid 2016. I wont pretend to be across all of them as there are too many to keep abreast of, but I'm across a lot of them as I am routinely approached to sell them, and so far I am seeing little that will go anywhere near valuing up in Brisbane or Melbourne, and I'm seeing one particularly overpriced project in Sydney ( Jordan Springs ) where they are @ 60-80K over bank valuations. The only stock which appears to have bank valuer support is in WA, in areas such as Rockingham, Coolbellup and a couple of others. Cant comment on TAS or SA, as I havent seen any new NRAS there in quite some time.

 

@euro73 Sydney Southwest is a great area to invest for sure, the estate like Jordan Springs, Oran Park and Edmondsons Park surely will become a great suburbs.

Look at this news: http://www.adelaidenow.com.au/reale...idential-project/story-fni0cly5-1227160871962

That's even from before the project is fully built, the author knows its potential.

Note: I can say this because most of my friend who lived in Campbelltown and Ingleburn says that the Southwest is growing bigger and better. and also some of new colleague who just got married bought property there to move in and raise the family.

For Example: one of my friend who bought 2 bedrooms apartment there since January this year, the valuation has come up from $480,000 to $520,000 he bought that with 90% LVR as first home owner and now he is enjoying estra $40k capital gain in less than one year. Settlement date is October this year when the apartment is fully build.

 

Jordan Springs is not in Southwestern Sydney. But yes, Jordan Springs (and others you mentioned ) "may" eventually make you a fortune, but before anyone starts counting their profits, it would be prudent to consider that when you start out with a scenario where you require;
A - 12% deposit (if you wish to do 90% LVR lending) and 20% if your particular lender offers 80% for investors now
B - Stamp Duty
C - 80K(ish) shortfall
You end up at D ; contributing 80K + more than fair value , on a "maybe", hoping to get it back with quick capital growth, and in a post APRA environment where you have credit rationing and repricing just starting to take effect, and already demonstrably slowing the market. Dangerous stuff. You would want to think twice, I think !

And if that doesn't provide sufficient reason to pause for thought, consider this; we have really only seen Stage 1 of the bank credit tightening so far, and it will most definitely get tighter from here for investors. The banks have some way to go to satisfy the significant new weighting requirements being imposed by APRA, and you should absolutely consider further I/O rate increases, LVR reductions and cash out restrictions to be on the horizon over the coming 12 months from the big 4 and Macquarie. If I were a punter I'd estimate another 15-20bpts will be required. That may come from holding back an RBA cut, or it may come from an increase- either way it will differentiate I/O from P&I even further, and make borrowing capacity even tighter for investors.

But all APRA issues aside, when you simply compare the 34 x NRAS approved 3 Bed Townhouses I sold to investors in Bunya @ 560-590K, which are due for completion in Feb - March 2016, and which are located close to Blacktown Station, Doonside Station with easy access to motorways, with these 2 bedders @ Jordan Springs which are due for completion in Feb 2016 and are 7-8KM from the nearest rail , have limited shopping and medical and education in the area and are a 15 minute drive from the nearest major roads, it's hard to justify their prices being only 30-40K less than Bunya. Even the premier developments at Thornton Estate in Penrith, being built by St Hilliers with high end fit outs, are high 400's - low 500's, and they have superior location, rail, shopping, hospitals etc on their side.

Now if Jordan Springs was priced in the 450-480K range, it would be a great buy with the NRAS onboard, but not at 520-550K .

 

how did you go with this SMSF purchase? i'm considering getting an IP in super too as i just switched to esuperfund which does everything for you etc. i'm in my 30s and don't have a large fund but i found they kept deducting 2-2.5K in fees per year and i'm pretty confident to be able to generate higher returns. But i'll see how it goes. atm i actually go through all the legals etc and even presented my super scheme in terms of deductions etc to the ATO.

 

Alternatively, diversify your IP portfolio and buy in both Australia and the US. Buy one for $700,000 in Australia and for the same money, buy a few in the US.

 

Hi ripas,

How did you go with the purchase? Please share your journey as I am in the same stage as you some time ago.

Thanks