Don't Buy Property in an SMSF (until you've seen this!)

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  • Опубликовано: 22 дек 2024

Комментарии • 38

  • @talkaboutmoney9246
    @talkaboutmoney9246 2 года назад +27

    Hi Luke, great video. I disagree with some of your points. I’m paying 3.99% on a LRBA for my SMSF. I have purchased 3 properties giving me 6%+ rental yields, in growth areas. In terms of costs and additional paperwork, it is no different than buying a property under a trust outside of super.

    • @lukewiles1
      @lukewiles1  2 года назад +1

      Thanks mate. Agreed if you can setup in an efficient way and get access to a good rate, go for it!

    • @massivemagoo
      @massivemagoo Год назад +1

      Hope u got a fixed rate buddy

    • @danieldomingues607
      @danieldomingues607 Год назад +2

      @@massivemagoo I didn’t fixed it but the yields have increased with higher rents and they are still ok, so no dramas. Would be so much better if I had 😀

    • @massivemagoo
      @massivemagoo Год назад

      @@danieldomingues607 wots ur current loan rate

    • @danieldomingues607
      @danieldomingues607 Год назад +2

      @@massivemagoo 7.39%

  • @Woodland26
    @Woodland26 17 дней назад

    I bought my work premises with smsf and now it is left hand paying right hand, an arm's length rental

  • @pauljarrett6546
    @pauljarrett6546 Год назад +19

    I bought a property using a smsf and I have doubled my super balance in three years . The rent is paying off the mortgage and all costs.
    I will be rolling the property over into my retirement so I also get exempt from any capital gains.
    I had great help in setting up and choosing the property.
    I now have plenty of cash for retirement .
    I still have my normal industry fund super, so I haven’t put all my eggs in one basket.
    From my experience, as long as you get the right advice and invest wisely, buying property with your super is a great strategy.
    And you get to keep all of the equity growth if you roll it over when you retire .

    • @ree4428
      @ree4428 Год назад +2

      Hi Paul I am considering going through WT capital for a smsf. Is it a good idea still to start one due to the current market conditions and interest rates? And what is a good Interest rate with the banks at the moment etc.
      Any info much appreciated as you are experienced in that area :)

    • @pauljarrett6546
      @pauljarrett6546 Год назад

      @@ree4428 I can’t give financial advice. It’s always good to buy somewhere. That’s the beauty of an investment property. You aren’t restricted to local properties.
      I negotiated my interest rate down on my super, it’s no different to a loan outside of super.
      Getting reliable professional advice is the key.

    • @OilBaron100
      @OilBaron100 8 месяцев назад +1

      Hi Paul, I am interested in doing this myself in the next couple of months.
      Can I ask how much it cost to set up the SMSF and how much it cost each year to do the tax & accounting?

  • @jonathanroy5924
    @jonathanroy5924 8 месяцев назад +3

    You can get 90 % LVR and 80 % LVR and if you are buying with 5.5% yield or above with 80% LVR and Interest only you should be pretty close to neutral and you’d have you compulsory contributions to bridge any gap. As for tax returns. You have to do that anyway for any property. With SMSF you can pay the accounting fees from your SMSF so they do it for you. Really not that hard.

  • @fredsalfa
    @fredsalfa Месяц назад

    Advantage of buying in smsf is once your property increases in equity over 1-2 years you can sell the property and that is a deposit for 2 more properties. In another 3-4 years do the same and you have 4 more properties etc to infinity. People have done this successfully and that’s the way to fo it.
    Yes you need an accountant to do everything for you. And you need high yielding properties also. Perth is a good example of high yielding properties.
    This method increases your equity exponentially far greater than stocks over the same period

  • @matthewxcountry
    @matthewxcountry 2 года назад +2

    You mentioned this it at the end, but worth emphasizing, investing in property with your personal savings and shares in the super is a fantastic way to diversify your assets. Its such a natural, low effort way to do it. Personaly, I'd only consider investing in property in my SMSF if I felt homesick for the USA and wanted to remind myself what spending 48 hours on a tax return felt like. Great video as always.

    • @lukewiles1
      @lukewiles1  2 года назад +1

      Thanks mate! Splitting your savings between shares / property, investing over time makes sense. Exactly haha - no one wants to spend extra time on the tax return, unless it's paying great returns!

  • @detectiveofmoneypolitics
    @detectiveofmoneypolitics 11 месяцев назад

    Economic investigator Frank G Melbourne Australia is following this very informative content cheers Frank 😊

  • @MarkAble8
    @MarkAble8 Месяц назад

    So, buy an investment property outright. No interest headaches.

  • @marionjoy-if3lp
    @marionjoy-if3lp 4 месяца назад

    Great video

  • @Pal-k2d
    @Pal-k2d 5 месяцев назад

    Two best points 1. Are you maximising super concessional contributions 2. Diversify at low fees

  • @synergyiii
    @synergyiii Год назад

    what is your thoughts on btc?

    • @lukewiles1
      @lukewiles1  Год назад +2

      Not a big fan because it's not been adopted by governments. Also only has utility if others agree to pay more for it.
      I personally prefer to invest in things with tangible utility. Like property or coca cola which produce a product etc

    • @synergyiii
      @synergyiii Год назад

      @@lukewiles1 bitcoin is the cheapest way to buy the future because bitcoinis the only medium guaranteed to not be debased.

    • @danielkeenan1984
      @danielkeenan1984 4 месяца назад

      its been the highest preforming asset in the world 12 out of 15 yrs

    • @andrewcheshire244
      @andrewcheshire244 2 месяца назад

      @@danielkeenan1984 until it is banned by govts... and the value of it goes to zero. That will happen.

  • @razadaza9651
    @razadaza9651 2 года назад +2

    Huh? A lower LVR is a negative? Ahhh geez… the greedy “investors”,,, no.. you’re no “investor”

    • @lukewiles1
      @lukewiles1  2 года назад

      debt is just a tool

    • @razadaza9651
      @razadaza9651 2 года назад

      @@lukewiles1 tool that the majority do not know how to use, and a tool where the trend is that it has been made more readily available to more people who don’t know much about them…

  • @wedgetailleather
    @wedgetailleather 2 года назад +5

    I would say if you are all in property outside your super, then having your super in shares isn’t a bad option to diversify.
    For some though, saving a deposit for their own home can be a big enough ask… especially for young families (e.g. my mortgage is only 43% of my daycare fees!). In such cases, it may be that investing in property through their super is more attainable, because contributions are on autopilot every payday; and because a SMSF can be joint between spouses with funds combined from each of the spouses superannuation funds.
    For me, I’ve always prioritised my own investing over super, because retirement is a long way off. Super has undergone substantial changes, just in my working life so far… so why put all your eggs (aka extra contributions) in something that might not be what you expected in 30yrs? Even if the tax incentive is attractive I don’t like that risk, and would rather buy shares or property from my after tax $$$ that I can sell when (tax, legislative) conditions change.

    • @lukewiles1
      @lukewiles1  2 года назад +1

      It makes sense for us to invest in property outside of super but definitely not for everyone! The main reason for my making this video is to warn people of some of the Super investing pitfalls related to property as lots of spruikers love the idea (more fees and more money for them if people buy in super.)
      Daycare sounds expensive! Love that you're building wealth outside of Super as priority and taking ownership of the journey. I'm the same, I would prefer to have control of my after tax $$$ rather than pay extra into Super which I may or may not be able to access a long time down the track!

    • @wedgetailleather
      @wedgetailleather 2 года назад +1

      @@lukewiles1 oh hell yes there are plenty of pitfalls 😂
      If I was struggling to save a deposit for my own home and wanted to buy my investment for retirement now instead of in 5-10yrs time, then leveraging my combined super with my spouse could be a good way to go… of course, that doesn’t consider what can happen in the years leading to retirement. Laws change, taxes change, markets change (think mining towns), relationships change (death, divorce)… and there is a lot of work to do in setting up, maintaining, and even transacting on the accounts in a SMSF in general that are made more complicated by loans and property maintenance and transactions. You’d want a good accountant to help navigate it!
      Daycare is $$$ we payed about 580/wk for two kids…. And that’s after a 50% rebate.

    • @lukewiles1
      @lukewiles1  2 года назад +1

      @@wedgetailleather couldn't agree more around the effort that's involved with running an SMSF but it definitely works for those who don't need leverage.
      Wow that's crazy expensive ! 😳 something for me and my wife to look forward to down the track 🤣