We're here to help, so let us know what we can do for YOU. Either call us on 1800 085 085 or fill in your details and we'll contact YOU...
Phone: 1800 085 085
Scibbo came to us with $180,000 in his SMSF. And he was earning $105,000 pa. He wanted to purchase a property in his SMSF although he wasn't sure if he would qualify. He'd never owned property before, and he never thought he would own property. First we worked through the nerves of actually applying for a loan, and then we worked with him to establish the maximum loan amount he could borrow, and the maximum he could spend on a property.
He didn't really know where he wanted to buy, although he did ask the question... "Could I live in the property once I retire?" Here's what we started with...
SMSF Starting Balance - $180,000
Scibbo’s Income - $105,000 pa
Age of Applicant – 51 years old
And here’s how it finished…
Qld Property Price - $446,000 (3 beds/2 bath/1 car townhouse overlooking a park)
Loan Amount - $312,200
Deposit Required - $134,000
Costs - $24,000 (Stamp Duty/Conveyancer/Lender)
TOTAL OUT OF SMSF = $158,000
He still had $22,000 left in his Super Fund after the purchase.
We worked with Squirrel who set up the Super Fund. And RWE who found the perfect property.
The brand new property was rented out a week after settlement for $450 a week. This and Scibbo's continuing Employer Super Contributions will service the loan. He's decided to pay more than the actual payment on the loan from his Super Contributions so it's paid off by the time he retires. All costs including rates and strata will always come from his SMSF account.
And to answer Scibbo's original question... Yes, you can live it when you retire!