Jeff's Story...

Jeff came to us with $90,000 in his SMSF. And he was earning $65,000 pa. He wanted to purchase a property in his SMSF. And he thought he might go live in it when he retires in 15 years’ time. We worked with him to establish the maximum loan amount he could borrow, and the maximum he could spend on a property.

As he was originally from Cairns, this is the area that he said he’d like to retire to. Here’s what we started with…

SMSF Starting Balance - $90,000

Jeff’s Income - $65,000 pa

Age of Applicant – 50 years old

And here’s how it finished…

Cairns Property Price - $195,000 (1 bed/1 bath/1 car apartment)

Loan Amount - $136,500

Deposit Required - $58,500

Costs - $11,000 (Stamp Duty/Conveyancer/Lender)

TOTAL OUT OF SMSF = $69,500

Jeff still had $20,500 left in his Super Fund after the purchase.

The rent from the new property and Jeff's continuing Employer Super Contributions will more than cover the loan repayments. All costs including rates and strata will always come from the SMSF account.