As always, great conversation Tod. One issue with the calculation I see though-S&P 500 over the last 30 years average 10-11%. So if someone to open an smsf and invest in one of many S&P 500 ETFs they should get the similar returns. If you run the model on these parameters, you will find S&P 500 will generate close to $7 million over 35 year. This is without the risk of leverage. Also note, I have not factored in the $18000 that the first investor would have contributed over the 30 year period.
Great insight mate! I feel this is a situation that could have so many sonarios played out, would be interested to make an extreme detailed model, might get a little tricky to communicate all the moving parts 🤔 But I like you’re thinking bro!
This guy is exaggerating. How can someone on 150k get a $850k loan Which lender is lending that much? I have a higher income than 150k and lenders don't come anywhere near to 850k loan on SMSF. He's messing with the figures and wasting people's time. After paying to be on this infomercial.
You’re missing the point. We’ve used round numbers so it’s easy to follow. Borrowing cap of $850k or $600k won’t change the outcome. Power of leverage and compounding is what we’re demonstrating. 👌
@@bfpproperty but you demonstrate the power of leverage using bullshit figures. You use the input correctly for the shares but then you make a falsely inflated input for the property. As you say the input doesn't change and that's the person salary. Under no circumstances can 150 g borrow 850k with any lender for self managed super. They can probably borrow about 350k max (based on 500wk rent) so you should be doing the leverage off like a 500k property not $1m
@@gatoblanconzful I take your point. If we use a $600k you’re still better off after the first ten years. Not here trying to say it’s the right strategy for everyone, just an option people should explore.
Borrowing capacity is based on serviceability. So, for an SMSF your contributions into the fund + rental income will determine your borrowing capacity. Having said that, we’ve used very round numbers for this exercise and ease of math. Main point to take out of this is the power of leverage & compounding and this is what we’ve demonstrated. Hope that helps.
@@bfpproperty this guy is full of it there's no way you can get that sort of money in smsf in resi with that salary. No lender goes that high. Not even close. He has deliberately exaggerated. Actual borrowing capacity would be less than 350 K on $500 a week rent. Extra rent doesn't change that figure by much. For example 800wk rent only gives 430k borrowing. This guy is probably just trying to get people keen to contact him as this channel is an advertorial, then he sells them off the plan or something he has stitched up.
@@gatoblanconzful you can borrow much more than $350k. Ignore the actual numbers, the point we’re trying to make is leverage + compounding will put “most” people in a better position.
As always, great conversation Tod. One issue with the calculation I see though-S&P 500 over the last 30 years average 10-11%. So if someone to open an smsf and invest in one of many S&P 500 ETFs they should get the similar returns. If you run the model on these parameters, you will find S&P 500 will generate close to $7 million over 35 year. This is without the risk of leverage. Also note, I have not factored in the $18000 that the first investor would have contributed over the 30 year period.
Great insight mate! I feel this is a situation that could have so many sonarios played out, would be interested to make an extreme detailed model, might get a little tricky to communicate all the moving parts 🤔
But I like you’re thinking bro!
Can also invest in property that has a much higher historical growth run rate than we have used 👍
This guy is exaggerating. How can someone on 150k get a $850k loan
Which lender is lending that much?
I have a higher income than 150k and lenders don't come anywhere near to 850k loan on SMSF. He's messing with the figures and wasting people's time. After paying to be on this infomercial.
These people who run podcasts usually lie to lures customers. They all got conflict of interest.
You’re missing the point. We’ve used round numbers so it’s easy to follow. Borrowing cap of $850k or $600k won’t change the outcome.
Power of leverage and compounding is what we’re demonstrating.
👌
@@bfpproperty but you demonstrate the power of leverage using bullshit figures. You use the input correctly for the shares but then you make a falsely inflated input for the property. As you say the input doesn't change and that's the person salary. Under no circumstances can 150 g borrow 850k with any lender for self managed super. They can probably borrow about 350k max (based on 500wk rent) so you should be doing the leverage off like a 500k property not $1m
@@gatoblanconzful I take your point.
If we use a $600k you’re still better off after the first ten years.
Not here trying to say it’s the right strategy for everyone, just an option people should explore.
This looks misleading. Did he factors in negative cash flow in final value?
Who can lend you $850k with $150k deposit?
Borrowing capacity is based on serviceability. So, for an SMSF your contributions into the fund + rental income will determine your borrowing capacity.
Having said that, we’ve used very round numbers for this exercise and ease of math. Main point to take out of this is the power of leverage & compounding and this is what we’ve demonstrated.
Hope that helps.
@@bfpproperty so you round up from like a realistic 350k borrowing capacity to 850k. What a joke. Don't mislead people don't waste people's time
@@bfpproperty this guy is full of it there's no way you can get that sort of money in smsf in resi with that salary. No lender goes that high. Not even close. He has deliberately exaggerated.
Actual borrowing capacity would be less than 350 K on $500 a week rent. Extra rent doesn't change that figure by much. For example 800wk rent only gives 430k borrowing.
This guy is probably just trying to get people keen to contact him as this channel is an advertorial, then he sells them off the plan or something he has stitched up.
@@gatoblanconzful you can borrow much more than $350k. Ignore the actual numbers, the point we’re trying to make is leverage + compounding will put “most” people in a better position.
@@gatoblanconzful sorry to disappoint but we don’t touch off the plan. Appreciate your feedback, all the best.