Special: Real life case study

There is a significant amount of information available on the web in regards to using your superannuation to purchase investment property through a self-managed superannuation fund and a limited recourse loan.

However, the information seems largely theoretical, lacking detail and often only focuses on one particular aspect of what is a very complex process with many different hurdles that an investor needs to overcome to successfully buy property with super.

I have recently completed a case study uses real life information on a real Melbourne based property.

In the case study, I will demonstrate the process that I would undertake with the investor to answer the following key questions:

1.      How much do I need to have (in super and/or personal savings) to successfully complete the purchase of my desired investment property?

2.      What will be the annual cash flow situation for the property within the SMSF?

3.      What will the impact be to my personal after-tax earnings?

4.      Would I be better off buying the same property in my personal name?

5.      Will I need to provide a personal guarantee to the lender for the SMSF loan?

6.      Are there any legal restrictions or compliance issues the investor needs to be aware of?

Because of the amount of content required to cover all of the above questions, I have put the case study together as a downloadable PDF which can be found here:

DOWNLOAD CASE STUDY

There are a number of resources I utilise in the case study.  For easy reference you can access these useful FREE tools here:

I would also like to thank One World Group for providing all the details on the specific property used in the case study.

In the case study I undertook a detailed analysis and provided key discussion points to the investor (Michael).  This service is also available to my clients, and as shown in the case study it really helps in making the strategy of buying property with a SMSF become reality.

If you have any questions or comments about the case study, or you would like to enquire about using my services to help you successfully complete a SMSF property purchase, please contact me.

 

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  • http://www.evolvemysuper.com.au Kris_Evolved

    Just made an edit to page 10 in regards to the deductibility of establishment costs – the way I had written you could interpret that I was saying that SMSF establishment costs were tax deductible. This is not correct – they are non-deductible expenses.

    Any borrowing costs incurred by a SMSF when it obtains a limited recourse loan are tax deductible over a 5 year period (proportional on a daily basis).

    The above change doesn’t impact any of the calculations included in the case study as has no material impact on the outcome.