Property price
\$
Current super balance
\$
Spouse or co-investor super balance
\$
Based on the data you have supplied, we estimate you need a super deposit of:
Deposit required
\$0
Current deposit
\$0
You have enough super saved to invest in property of value \$0.

## How much deposit do I need?

Want to know how much deposit you need in your superannuation to buy an investment property? It’s easier than you think. But before you get started, there are three things you need. The first is the price of the property you wish to purchase.

The second is the amount of money you have in your current super balance. And the third is the amount of money in your co-investor’s super balance. The ultimate goal is for the total of your super balance and your co-investor’s super balance, to be at least 20% of the property price. Why is this so? Because banks will generally lend anywhere up to 80% of the property price, therefore at least 20% must be met by the buyer.

Let’s look at an example. James wants to buy a \$400,000 house in Kiama with his wife Sarah. James has \$25,000 in his super balance, while Sarah has \$15,000. After putting those three numbers in their allocated spots in the How much deposit do I need? SMSF calculator (and clicking ‘Calculate Now!’), it becomes clear that their combined current deposit of \$40,000 is not enough.

As indicated in red, the deposit required is at least \$80,000 (20% of \$400,000), meaning that together they have half the amount needed to invest in the \$400,000 property. After discovering this information, James and Sarah turned their attention to a \$200,000 property in Broken Hill.

In this situation, their combined current deposit of \$40,000 is exactly the same amount as the deposit required. Therefore, they have just enough super saved to invest in this property. Consequently, the How much deposit do I need? SMSF calculator is an excellent place to start for those considering investing in property using their SMSF.

Not only does it save a trip to the bank, it also provides a dollar amount to strive towards.

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