Jeff's Story

Setting up property for retirement.

Jeff came to us with $90,000 in his SMSF. And he was earning $65,000 pa. He wanted to purchase a property in his SMSF. And he thought he might go live in it when he retires in 15 years’ time.

As he was originally from Cairns, this is the area that he said he’d like to retire to.

We worked with him to establish the maximum loan amount he could borrow, and the maximum he could spend on a property.

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The Breakdown

Here’s what we started with…

SMSF Starting Balance - $90,000
Jeff’s Income - $65,000 pa
Age of Applicant – 50 years old

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And here’s how it finished…

Cairns Property Price - $195,000 (1 bed / 1 bath / 1 car apartment)
Loan Amount - $136,500
Deposit Required - $58,500
Costs - $11,000 (Stamp Duty / Conveyancer / Lender)

Total out of SMSF = $69,500

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The Outcome

Jeff still had $20,500 left in his Super Fund after the purchase.

The rent from the new property and Jeff's continuing Employer Super Contributions will more than cover the loan repayments. All costs including rates and strata will always come from the SMSF account.

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