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Q&A: Using super to invest

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Your Investment Property | 13 Oct 2011, 12:00 AM Agree 0
I believe that long-term property investment is much safer than investing in shares and would therefore prefer to use my superannuation to buy an investment property. Is this easy to do?
  • graham | 10 Feb 2014, 07:17 PM Agree 0
    how much of my super will I need to purchase a investment.
    Is $ 40 000.00 enough or do I need more. The property I would like to invest in is $470 000.00
  • George Nelson | 11 Oct 2014, 10:42 PM Agree 0
    Sure I also believe on long-term property investment more than investing in shares. I guess it could be easy to invest.
  • Mark Coburn | 28 Oct 2014, 05:46 PM Agree 1
    YIP & Graham,
    Yes it's easy to do. You need to have at least 20% deposit plus and extra $20,000-$50,000 in cash to play it safe if you are going to use a SMSF to invest in property. Don't believe everything you hear on the subject.
  • Steph | 11 Nov 2014, 09:58 PM Agree 0

    Can you use your super to purchase a land as investment or does it have to be a house/property ? I heard a 48% tax on the entire super amount is payable in first year ?
    • Peter | 22 Aug 2016, 05:43 PM Agree 0
      Hi just wondering if you got a responce lm wanting to do the same..
  • PaulG | 06 May 2015, 12:35 PM Agree 0
    I am 56 years old, Working full time. I own a house and a unit in Parramatta worth approx $540k. I have approx $120,000 in super at the moment. I would like to create an SMSF to buy a rural investment property for the purpose of turning it into a money-making venture via cropping. The cost of the land is about $550k. My input would be $450k by mortgaging the unit as well as $30k cash.

    Would this be possible? Is there any time required before the property starts making money?

    • PeterC | 06 May 2015, 04:42 PM Agree 0
      PAulG, Not the information you are asking for , but meant to be a helpful comments for you to evaluate your plan . I lived on a farm in my younger years, "about a money-making venture via cropping" Why not just lease the land ? would reduce the risk. What is the plan, if you have a drought for a few years ? How secure is the water supply? What if you have a good season but market price is (very) poor? Can product be stored? for better market opportunities? Have you identified other risks
  • peter | 16 Jun 2015, 04:46 PM Agree 0
    Hi what are the costs to have the smsf for an investment property as I have heard they can add up over the years. Thx
  • Peppa | 26 Sep 2015, 12:33 PM Agree 0
    Hi my husband and I only have about 160,000 super between us and we are currently buying our home but want to purchase a rental property with our super. our combined income is about 160,000 per annum.
  • Bruce R | 18 Dec 2015, 10:38 AM Agree 0
    So can I pay out the loan on an investment property that I already have with my super? cab I draw "some" of it out to buy it? of would I have to retire to access the funds? thanks regards, B
  • Fiona | 10 Jan 2016, 07:41 PM Agree 0

    My husband and I have an investment property, but we are about to do extensive renovations to our family home and are therefore thinking of selling our investment property to help ease the financial burden. Do you know if we would be able to purchase our existing investment property with our superannuation?
  • Andrew | 27 Feb 2017, 02:24 PM Agree 0
    I am retiring early my super preservation age is 58 can I access this and still have a rental property.
  • Katt | 19 Oct 2017, 09:49 PM Agree 0
    You would probably know that many people use long term property investment, buying flats or homes to rent out as an investment strategy for later life. While Investing in shares can be a high-risk strategy, as the value of your nest egg can rise and fall depending on economic sentiment as well as company performance. I suggest you should probably stick with long term property investment.
  • Megan | 03 Sep 2018, 01:59 PM Agree 1
    Hi, my husband and I have $300,000 combined super. We are building our first home together. We'd like to buy a property to convert into a childcare centre for me to run. I'm fully qualified and have run a centre in the past. Our combined earnings are $130,000. We'd require a business loan to convert the property and currently have minimal savings. Is this idea at all possible? Thank you for your advise.
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