How I bought Investment Properties through my SMSF
ฝัง
- เผยแพร่เมื่อ 13 เม.ย. 2020
- In this video Eddie Dilleen shares his experience with buying property in a self managed super fund SMSF- and shares a few examples about how it can be beneficial to growing your wealth!
This is not financial advice - only from experience
Check out the Dilleen Property website to find out more
www.dilleenproperty.com.au/
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Disclaimer: This is not intended as legal, financial, or investment advice and should not be construed or relied on as such. Before making any commitment of a legal or financial nature, you should seek advice from a qualified and registered legal practitioner or financial or investment adviser.
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Disclaimer: This is not intended as legal, financial, or investment advice and should not be construed or relied on as such. Before making any commitment of a legal or financial nature, you should seek advice from a qualified and registered legal practitioner or financial or investment adviser.
Thank you very much🙏! Extremely helpful & easy to understand!
excellent video! The first person I have ever heard explain SMSF simply
Thanks SO much Cameron! you're a legend!
Love it - honest and authentic. No BS
Nice presentation Dilleen. I have also gone through your ebook. Good stuff. And yes, I have dropped you an email inquiry as well being a new potential client :)
greaat advise. i was thinking of doing this for along time:)
Very informative, and easy to understand, thanks, Eddie.
Glad it was helpful!
Great video brah. Thanks for taking your time to create it 🙏
Great content. Would you recommend doing this after you have maxed out your servicing ability outside SMSF first? ( buy in your personal name/trust first) or would you say we should pursue both at the same time?
Good work mate just started my own SuperFund but having trouble getting loan gonna take your idea in try that lender
Good video 👍
You mentioned tax deductions. Are these deductions for the Trust or can you use them for your own personal tax situation?
Thanks that makes a lot of sense I might try that
Great advice bro 😉
Hi I'm interested in this type of investment but I'm bit skeptical about house prices how you know they double value? It looks like a lot of house having lost their purchasing price
It depends on personal towards risk assessment. For some may not want to have a "huge debt" hanging over their neck after all this is their nest egg for retirement. Now you have debt to service and you have to make sure you have on=going steady stream of income or employment. Other factors like age, interest rate hike, inflation, future uncertainty, market confidence etc.
Boss
Could you please advise how to find below market value places ? Corelogic ?
Great explanation. Thanks Eddie!
Absolutely 💯 makes more sense!
hi dilleen, i wonder if you have any tips buying property using fhss? tnx!
good stuff
Thanks heaps bro..
Thanks for sharing these information..I got 85k in my super,can you guide me..emailed to you about my details..hope talk soon..love you bro
Hey Mate, What happens if the rent doesn’t cover the mortgage? Do you have to top up from your super or your savings account?
Depending on lenders. Usually Low lending for SMSF
Greaat video just a few things to consider when you buy with smsf the property is technically not owned by you but the smsf there are alot of rules around doing this that you need to consider
Cheers dude
How much did you paid for set up SMDF including bare trust deed
You’ve won a sub))
Hi mate, that was a great video.
I am currently looking into this myself- setting up a smsf and purchasing an investment property/ies.
I would love more information if possible. Sydney based.
Hi Jack,
Thank you, glad you liked the video!
I'd be more than happy to send through some more info, let me know your best email address and I'll have that sent over to you.
Hey Dileen, thanks for this video.
Very succinct.
Would you mind sending me what you sent jack? I’m in a very similar position.
Thank you for the info
Good video, structure and what growth is achievable is well explained. If you’ve bought in the right places you can probably use property growth doubling down to every 10yrs.
What is missing is the cashflow element - what yields are you targeting? How is the loan paid down? What’s the risk if the property ends up negatively geared? Can happen with interest rate rises as we are seeing now in 2022.
Eddie focuses on yields mostly ranging from 6% - 12% in his portfolio, some may be slightly lower as they can be balanced out by some of the very high yielding properties in his portfolio. He also aims for positive cash flow so the tenants are paying down the loan and the property is servicing itself.
Eddie talks about the rates rising in 2022, how that will affect his portfolio and what he's doing in this video: th-cam.com/video/5Kk1D8I1vA0/w-d-xo.html
The accountant helps create SMSF and we can transfer money from our normal super account to our SMSF. How long we need to keep money in SMSF in order to use it to buy investment property?
Hey Vivian, we have another video on using a SMSF to buy property which may help answer these questions for you :)
th-cam.com/video/pNAZ_o_bQOo/w-d-xo.html
I just see this video after 4 years, i got few questions . i have $160K in my supper today June 2024 in my own my wife doesn't work and my kid already move out home . I start thinking to buy investment property with my supper and start SMSF because i been see add in facebook about this need minimun of $200K to start SMSF to buy supper but you say start just with $46K can you confirm this , so i can used my $160K supper and not wait to get $200K.
Also if i can buy 2 properties can be in different state in australia , because if i buy 2 in one state like melbourne i will force to pay Land Tax or have acception for SMSF ?
my bank alreday told me won't give me any loan because still have my own home loan + investment property , do you think i can get loan with the one you recomend o any broker?
who can set up SMSF ? the one who made my tax like accounter ? any do you recomend,
how much will cost to maintance SMSF every year and will be same value if i buy 1 or 2 or 3 properties using SMSF?
please let me know because planning to buy this year, thanks You
Well done champ! The best on SMSF property on YT. Given this COVID situation, more people will be into SMSF. However, how do you deal with high interest rate? The one I got for my home loan approval is 6.84 which is huge, meaning all income would go to bank's pocket.
6.84!!!!
How are you dealing with the hikes? Any thoughts?
@@TheFfabinhoo I ended up securing the property at 5.15, but the rate has gone up to about 6% now (for smsf) and it goes under negative gearing. I think the best thing to do with SMSF is to buy property with 6-7% yield to cover the holding costs.
@@nasser.fard1 I've seen many having massive yeld and equity losses with the interest rate hikes. Scary.
Where do you get a property for under 300k these days
Great video and simple to understand, however, finding a property that is worth around 200-300K is impossible now a day.
Hi Paul, glad you enjoyed the video! However, it is definitely still possible to find properties in the 200k-300k range, i'm still finding them today :)
Where there is a will there is a way 😊
Who pays the loan? -$160 Rent, or your wages, or salary sacrifice?
I would like to know more
the tenant - rental income :)
Hey man thanks for the advice definitely looking into it now in 2023, is it possible to Live in the property you buy?
Nope. Not even your relatives. It has a bit red tapes around it.
Great video but let's just say all of our assets double in value in 15 years and we all live happily ever after, this is best case scenario. I'm a noob, however, my biggest question is how are you paying for the loans for 2 houses at 300k from your SMSF at 5-6% if you have nothing left in the SMSF? As 2 x 70k deposits and legal fees 10k (5k each sounds low) take up your whole 150k. Those loans cost each cost $1799 monthly at 6%, SMSF loans interest is higher. That's $21588 P.A x 2 =$43,176. The rental yield will eventually cover that but initially how is that actually possible with $0 left in the SMSF? Doesn't the SMSF have to cover the coast of the loan? I've been looking at investment properties on the market that are now worth the same as 2012, am I just looking in the wrong places. By the time you pay interest on them and pay the SMSF fees you can actually lose money. 4k for setting up a SMSF is below the average of 2019 of $6450. Has anyone else set up their SMSF for less than 5k? I'm looking at investing in SMSF property however, the SMSF calculation projections haven't been coming out ahead as I don't use projected % but the actual sales history of the properties.
He's in a huge cash negative scenario at that leverage. Oh and don't even get started on council fees, strata fees, water fees, maintenance, real estate agent fees.
somebody show me what property in Australia on $500K give 7% yeild you paying Principal and Interest $3,000 a mth , average rent on 500K house , must be a 1 or if lucky 2 bedroom UNIT would be around $380-$430 a week tthats 4% where do get 7% , interest only loan means property never getting paid off, u relying on extreme capital growth
I've seen many having massive yeld and equity losses with the interest rate hikes.
Have you considered this in your "business model"?
Eddie's made a video on his view of interest rates here if you want to check it out: th-cam.com/video/5Kk1D8I1vA0/w-d-xo.html
can you recommend anyone does supper transfer to self management fund?
Yes, happy to share our recommended partner with you. Please send us an email on admin@dilleenpg.com :)
If I sell the property after a few years does the money go back into my SMSF?
Good question
Yes, when you sell it incurs 15% tax if you are under 60 years old. And the money will be returned to the SMSF.
Why would you sell?
legend
What sort of property is worth 200k though? Is that just an example?
Does dilleen property delve into smsf? This is bryn Barnes by the way
We purchase properties ranging from 200k - 700k currently. It's definitely still possible to get properties on the lower end, especially around the Perth region.
Yes, Eddie has experience purchasing properties through SMSF and also helps clients do the same.
Would love to provide more info and guidance, send me an email on admin@dilleenpg.com :)
Very different workings now that interst rates are >6%
Good information Bro but please invest on a proper mic next time.
Good tips
Why does everyone say you must need $150K-$200K to even consider an SMSF, When you started with less than $70K? What year did you open your SMSF?
It’s just depends on the fees smsf are pretty expensive to maintain 3-4K start then maybe 2k each year after so pretty much getting smashed on a small balance from the get go unless you have a solid strategy that you believe can out perform retail super funds . You can imagine a small balance getting eaten away by fees won’t take long till you don’t have anything left that’s all bro
According to my wages, after I saved 150k -200k, I probably almost retired, so don’t believe other people’s say.
If you had invested that 150k into apple 15years ago it would have become 4.4mil not including dividends
4 properties in your SMSF? It will max out at $1,600,000 if the Government don't increase the limit you will be non-compliant in 20 years.....
Thought that was only in relation to your pension account transfer when you come of age? accumulation account can be infinite
Yeah, damn the super is eating my money, worse than saving in the bank
La trobe customer service is absolute crap. No one answers the phone, send them a message to ring back been 3 months and still no response.. went with another lender. More lenders now for SMSF lending since this vid 3 yrs ago and much better than LaTrobe
property Or Crypto?
Property 100%
To make a proper evaluation, you should include compound interest. You are not comparing apples with apples.
A $150k initial deposit with no additional deposits at 9% a year (realistic super returns) for 15 years, will give you $575,706.49. His point is still valid.
wow super that double in 15 years wtf. My super is losing money and there projected 14 year profit is 30% 2 % a year🤣🤣🤣
300k property.... in this market??! Might get you a 2 bedder in a crap suburb. Lol
Hey Christian, we are still purchasing properties for 200k - 700k in the current Brisbane and Adelaide markets (metro areas 10km-35km to CBD). You can check out some examples on our instagram/fb if you like :)
Its the other way around. You can't use leverage in SMSF as the LVR is low. The financial institutions use a low LVR as they are taking more risk and can't claw back anything outside the Bare Trust. SMSF LVRs are only 60-70%. Leverage is the opposite less cash in and a higher LVR. You can still get 80+% LVR (leverage) in a standard investment loan which you can't in a SMSF.
Andrew Birchley
Just bought one with 80% LVR
And have clients buying with 80% lvr
I highly recommend checking who is giving you this information :)
Andrew Birchley
What financial institutions are you talking about?? There are many lenders with all different policy’s??
You can get a loan with La Trope for 80 LVR with an established house in a metropolitan city and 70 LVR in a regional city. Anyone can use Esuperfund to set up SMSF for free and I have been with them since 2017 and they are fantastic to assist one to get loan from Liberty, La Trope and 2 other Lender. I got $200k now and hoping to purchase 3 or 4 properties next year.
Latrobe finance have bad review online mate
This strategies may not suit everyone more especially now banking system meltdown globally, inflation gone to the roof, rate hikes & high unemployment rates etc..
Where are you finding 200 and 300 k properties in Australia?