Should I Use My Super to Buy an Investment Property?

Should I Use My Super to Buy an Investment Property

Property investing through superannuation has been a bit of a hot topic these last few years in the Australian real estate community. So…

Should you buy property through your superannuation?

First, a disclaimer. Australian legislation prevents me from providing superannuation advice. For official advice, you need to talk to a licenced financial planner, advisor, or a superannuation accountant. Anything I say here is just general information and you must go and talk with someone qualified who knows your individual situation and can comply with regulations.

Some questions you should ask them are:

  • Do I have enough money in my super to buy a property?
  • And if I do, based on my individual circumstances, is it a good idea?
  • How do I set up a self-managed super fund?

Benefits of Buying Property through Super

Here are some of the reasons property investors might like to consider buying property through super:

  • You can have up to four beneficiaries of a super fund
  • A husband and wife can pool their funds together to buy a property
  • It could give you more control over the growth of your super
  • Property may offer a better strategy than leaving your money in shares

Potential Disadvantages to Consider

  • Lending is capped at about 70-80%
  • You’ll need to invest more conservatively
  • You’ll need to consider the personal insurances that are part of super
  • You’ll need a minimum amount of super (about $200,000) before this become a worthwhile strategy
  • There are rules to consider – you and your family members cannot live in the property, as it is strictly for investment
  • There are fees involved in managing and administering your self-managed super fund.

At the end of the day, your circumstances will vary, so you do need to go and see a financial planner. But I encourage you to seek a good one who understands property (some financial advisors are very quick to steer investors away from property).

If you want a good, balanced financial planner, get in contact with me so that I can put you in touch.


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Happy property investing,

Daimien J Patterson

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Legal Disclaimer: This information ('the information') is presented for illustrative and educational purposes only. It is not presented nor should it be treated as real estate advice, legal advice, investment advice, or tax advice. All investments involve risk and potential loss of money. If you require advice in any of these fields you should contact a suitably qualified professional to assist and advise you. Your personal individual financial circumstances must be taken into account before you make any investment decision. We urge you to do this in conjunction with a suitably qualified professional. Daimien Patterson, IntegrityX Enterprises Pty Ltd, and their associated trading names, companies, researchers, authorised distributors and licensees, employees and speakers do not guarantee your past, present or future investment results whether based on this information or otherwise. Daimien Patterson, IntegrityX Enterprises Pty Ltd and their associated trading names, companies, researchers, authorised distributors and licensees, employees and speakers disclaim all liability for your purchase decisions. You should do your own independent due diligence and seek the advice of qualified advisors before making any investment decision.