💡SMSF

What: Self-Managed Super Fund (SMSF) is a private super fund that you manage yourself.

✅ How to setup: SMSF can be setup with the help of an accountant which involves setting up a SMSF bank account, a bare trust and a SMSF trust. Once set up, the funds from your industry super fund (like, Australian super fund or HESTA etc.) are transferred to the SMSF bank account.

✅ Key features of SMSF are:

 – You can setup a SMSF with your partner and other family members, max 6 members

 – A member can be an individual trustee of the fund or one can setup a corporate trustee. In either case, the trustee is responsible for the fund.

 – Minimum balance – some lenders require at least $150k/ $200k, (don’t worry if you don’t have that much balance), and there are lenders who do not have any minimum balance requirement (currently working on a deal with less than $100k in SMSF)

 – Costs are a bit higher than buying in your individual name (interest rate, setup fees, ongoing compliance, loan establishment fees)

✅ Most importantly, the borrowing capacity of an SMSF is independent of your individual borrowing capacity, which means if you have exhausted your individual borrowing capacity you might still be able to borrow under the SMSF.

✅ Serviceability is calculated using the contributions to the SMSF and the rental income from the proposed investment property.

❇️🌟 SMSF investment in property could help your retirement funds grow at the pace of the growth of Australian property 🚀 (if it suits your financial situation and investment strategy)