Who can buy property in super?

The first thing you will need to do to buy property with your super is to establish a Self-Managed Super Fund (SMSF).

To be a member of your own Self-Managed Super Fund you must meet the following criteria:

  • Be 18 years or older,
  • An Australian resident,
  • Not bankrupt, and
  • Have no criminal record relating to dishonesty offences

Balance requirements for a property purchase in SMSF

With the recent changes to the Bank’s lending policies, all members will now need a combined minimum super balance of between around $150,000 to $200,000 to get started or approximately 40% of the intended property purchase price.

For a better understanding of how borrowing within an SMSF differs from the standard home loan, see the article Borrowing within an SMSF: The 3 Major Differences to your Typical Home Mortgage.For specific lending requirements seek advice from an experienced SMSF mortgage broker to calculate your fund’s borrowing capacity.

Who can buy property in smsf?

You can combine Superannuation balances

You can have up to 4 members of an SMSF and effectively pool your resources to buy larger assets. And whilst we usually see a husband and wife team, the four members can be siblings, adult children, friends or really anyone who’s eligible.

Individual Superannuation balances and performances are easy to track

Each member’s relative balance is quarantined within the fund so you’re always able to identify individual balances, even when there’s borrowing involved.

Property inside SMSF can offer income, capital growth and tax deductions. Good investment selection when buying property using your super can ensure a positive cashflow to the SMSF without members needing to make additional contributions. Not all property is appropriate for SMSF.

For a more detailed discussion about property investing using your Superannuation funds, register for a Free SMSF Consult.

This article is an excerpt from The Beginners Guide to Successful Property Investing Using Superannuation Funds, you can download the ebook version here.

What our clients say…

I had no experience in working with a financial advisor or wealth management group. I also did not have the time or interest to research information myself. It has been a pleasure to work with John and Steve, as they have guided me through my journey of starting an investment plan for my future. I would highly recommend Nexus for anyone who would like to grow their wealth and learn about the process while doing so.

We knew we didn’t have enough cash in our super to adequately fund our retirement. Thanks to Steve and his team, we now have a structured investment and retirement plan that will see us living out our twilight years in comfort.

After many hours of searching for financial advice within the Brisbane city, I was left with very little to choose from at a professional level. I came across the Nexus page and started researching. I liked what I saw and found it very user-friendly. Nexus offered us first class service with no hidden costs and was hassle free from the beginning. We have every confidence in the team at Nexus to help us create wealth and guide us to a healthy investment portfolio. With no hesitation whatsoever, the team at Nexus is highly recommended.

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