Frequently Ask Questions

There are a few risks you should be aware of when it comes to using your Self-Managed Super Fund to invest in property. A key consideration is cash flow! 

Your property loan repayments will need to come from your SMSF, so you need to make sure it has sufficient funds to make the repayments. You’ll need to have enough rent from your tenant and contributions from your employer to keep your SMSF in the green. 

The Advisors here at The Investment Property Guys will work with you to ensure these risks are minimised and that you're able to achieve a healthy return on investment. 

If you use your SMSF to purchase property, there are a few ongoing costs that you’ll need to consider. These include the following: 

• Property management fees 

• Accounting & auditing costs 

• Building insurance, council rates & water rates of your investment property 

• Body corporate fees, if relevant 

• Business registration of your SMSF with the Australian Securities and Investments 

Commission (ASIC) 

There may be additional fees depending on your situation. For example, some investors will require ongoing services from financial planners or advisors. Our trusted team of associates will help you calculate and plan for these costs. 

There are two options for your SMSF once you reach retirement: 

1. Firstly, you may choose to continue to receive rent on your investment property as your pension-based income. 

2. Secondly, you could elect to sell your investment property. In this scenario, you can use these funds as your retirement income once you've paid any remaining debt on the property. Keep in mind that you’ll need to have reached the preservation criteria at the age of 60 – 65 years to sell the investment property in order to not pay Capital Gains Tax (CGT). 

Property Investment is generally considered to be a safer option compared to stocks and shares as it is less susceptible to price swings. As a long-term strategy, investing in property is a common way to build wealth for your future or retirement. In most cases, you’ll also have more financial leverage. This is because banks offer substantial loans for property investments, sometimes up to 90%. Of course, this is based on individual circumstances, and it is highly recommended that you should speak to a financial professional to evaluate your options. 

The property market fluctuates in response to interest rate changes, tax incentives, the cycles of the economy and much more. However, most property investors will tell you that the best time to invest was ‘yesterday.’ This is because, long-term, the average property price in Australia continues to grow. Historically, there has not been a circumstance where property prices have declined over a medium- or long-term period of seven years or greater. 

If treated as a short-term investment, property investors will see lots of fluctuations in Real Estate prices. The market will have boom and bust cycles, hyper-growth years, years of stagnation and everything in between. The media hype focuses on every small change in the market. But this is what the team at The Investment Property Guys wants you to know - property as a long-term investment strategy is one of the most reliable options. Don’t let your fear turn into procrastination, which can turn into missed opportunities. Get in touch to find out what we can do for you! 

Investing in property is a big decision, which is why it’s recommended to engage an industry professional when purchasing your first investment property. A knowledgeable advisor can support you from the initial consultation and help you make a smart investment backed by their years of industry knowledge. 

The investment process begins with reviewing your financial position, goals and how much you can borrow. An advisor can efficiently evaluate this for you and let you know the next steps.

A limited recourse arrangement is a type of SMSF loan that allows you to purchase an investment property without having to use your personal funds. This means that if the property is sold at a loss, your personal assets will not be affected. There are a number of advantages of using a limited recourse arrangement to purchase an investment property. For example, you can use your SMSF to buy an investment property without putting your personal assets at risk. You may also be able to borrow a higher percentage of the purchase price, which can give you a greater loan-to-value ratio than a traditional home loan.

Once the property has been purchased, it must be managed in accordance with the rules set out by the Australian Taxation Office (ATO). These rules cover a range of issues, such as the types of expenses that can be claimed and the way in which income from the property is taxed. If you're considering purchasing an investment property through your SMSF, we can help you navigate the process and ensure that all of the relevant requirements are met.

If you're looking to invest in property through your SMSF, you should consider engaging the services of a qualified SMSF property manager. This is because the ATO has strict rules and regulations around how SMSFs can purchase and manage investment properties. If you choose The Investment Property Guys, we can help you navigate these regulations, so you can be confident that your investment is compliant. We’ve brought together a range of associates–such as financial planners, mortgage brokers and real estate professionals–to ensure your investment is in capable hands.