Top 5 tips for investing into property through your super:
- You will need a 30% deposit plus costs. Lenders want to see an extra 10% of the property’s value as a cash buffer in your super fund at settlement time. With a $450k property, you will need $135k plus $20k costs and a $45k buffer. Total minimum required super funds are at least $200k. This is in line with the Tax Office recommended minimum balance for an SMSF.
- You can have up to 4 members in the fund
- Members can combine balances i.e. $120k balance from Partner 1 and $80k balance from Partner 2 = $200k
- At least one SMSF member must have consistent super contributions to secure lending
- The rental income from the property in the fund is tax free in pension phase (i.e. when you retire)
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