13
Your property portfolio will now look like
this:
Your tenants and the tax man (through
rebates) help pay for the new loan, however
sometimes there could be a shortfall to be
serviced. This should be taken into account
when borrowing to ensure that the loan
on the new investment property and your
existing property can be serviced within your
budget. A margin should be included for any
interest rate rises.
Then all you need to do is sit back and let
the property market take its course. The last
century has shown, even in the tough times,
that capital gains generate additional equity
every seven to ten years.
TOTAL HOMEVALUE
$500
k
$400
k
MAXIMUM
BORROWINGS
80%
EQUITY AVAILABLE
125
k
UNAVAILABLE
EQUITY
20%
$100
k
TOTAL INVESTMENT PROPERTYVALUE
$500
k
$400
k
MAXIMUM
BORROWINGS
80%
EQUITY AVAILABLE
0
k
UNAVAILABLE
EQUITY
20%
$100
k
AMOUNTTO PAY
400
k
AMOUNTTO PAY
275
k
TOTAL HOMEVALUE
$500
k
$400
k
MAXIMUM
BORROWINGS
80%
EQUITY AVAILABLE
125
k
UNAVAILABLE
EQUITY
20%
$100
k
TOTAL INVESTM NT PROPERTYVALUE
$500
k
$400
k
MAXIMUM
BORROWINGS
80%
EQUITY AVAILABLE
0
k
UNAVAILABLE
EQUITY
20%
$100
k
AMOUNTTO PAY
400
k
AMOUNTTO PAY
275
k
Once you learn this strategy you
can repeat it as often as you
want, provided you can service
the debt.
Buying an investment property
through a superannuation fund
Did you know that you can use your self
managed superannuation fund to buy an
investment property?
You will need to consult your accountant or
financial advisor with regards to:
• what you can and cannot do in a self
managed super fund (SMSF),
• benefits of using an SMSF to buy a
property,
• challenges and pitfalls,
• using the correct trust structures,
• how to correctly source and set up
the finance, and
• how to buy an investment property
through a superannuation fund.
*Disclaimer: This information is generic in nature. All investment decisions should be considered wisely and based on your
personal and financial circumstances. Seek appropriate advice before committing to any course of investment action.
This is not deemed as advice.
