What Investment Price Range is Achievable with a SMSF?
If the turn key price for a duplex in Bribie Island is $1,150,000, how much would a couple need in their combined super to initiate this kind of investment?
The answer is, SMSF requires:
- A third deposit
- Cost of setting up SMSF
- Stamp duty & legals
To sum up, a couple would need a bit over $400k for this size investment. Steve Taylor would suggest, even, $440k to provide a buffer.
(A buffer safeguards the investment in the event of a job change or other unexpected occurrence.)
In this case, a combined income of $220k, if an employment contribution was 9.5%.
If the employee was on only $125k p.a., and his wife on maternity leave, for example, it does not rule this investment strategy out. The employee could potentially Salary Sacrifice $175pw (about $9k p.a) to his super. This would bring his total contribution to $21,000 p.a. The investment strategy would then still be achievable.
What is the maximum a couple can contribute to their SMSF per annum?
The total of employer contribution, plus salary sacrifice, is $25k p.a. So, if a couple had a combined $440k in super & a salary of $125k p.a., Salary sacrificed say $175 p.w., they could buy a fabulous duplex in the Pacific Harbour – Bribie Island for $1,150,000. Please follow this link to see an example of rental returns.
Does age matter in this strategy?
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Yes, these figures depend on the age of the client. Notably, the bank will not do a term past 75yrs. If the client is 50yrs old now, the term would be for 25yrs. Many of Steve’s clients would have $400k plus in their super by this time, so it is not a problem.
Traditional Residential Investment.
We currently have a lot in beautiful Crest St, Stone Ridge, Narangba. As the name suggests, it is an elevated lot. It is a grand design being a two story, 4 bed executive home. The returns are great. To view details, please click here. To hear how this could suit your needs, please contact Steve Taylor
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Refinancing
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Steve Taylor
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DISCLAIMER
Steve Taylor & Partners blog is opinion and not advice. Readers should seek their own professional advice on the above subject. The figures stated in this article were accurate at the time of publication. For up to date figures, please contact our office.
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