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NOT ALL investment properties are suitable to SMSF's

FACT : a very small percentage of properties are suitable to be an effective SMSF investment strategy.

The difference to you at retirement by getting it wrong could be hundreds of thousands of $'s

Did you know ...


As a Trustee of your Self-Managed Super Fund, you are held accountable for the selection of the asset, and ultimately the performance of your SMSF.

What this means to you is that selecting the 'best fit' property to suit your SMSF is imperative, and also vital to the long term outcome of your retirement planning.

It could be a difference of $1 Million Dollars at retirement to you! How would another $1 000,000 in your super positively change your lifestyle at retirement?

Selecting a property which does not suit SMSF investment requirements, could result in you putting your Self Managed Super Fund into jeopardy, and thus you the Trustee will be held accountable and liable for a highly punitive fine plus a lower amount in your super at retirement.

Numbers which run and underpin your investment may look like the table below the explanation

(for demonstration purposes only)

New or Off the Plan Property could  :

  • Include Low Stamp duties (in most States)
  •  No need to spend money fixing up to rent
  • Higher upfront rent
  • Higher rental income achieved and compounded, over the life of the investment
  • Higher Capital Growth over period of ownership
    • Compound growth off a larger base
  • Lower ongoing maintenance
  • Builder guarantees and warranties
  • Full depreciation benefits
  • Lower Cash Flow required to fund the investment in your SMSF, means higher end value at retirement for you

Existing Property could :

  • Include Full Stamp Duties
  • Expense to cosmetically fix up to be able to rent it out
  • Lower rent compared to the new home next door
  • Lower rent compounded over the life of the investment, means less capital at retirement in your SMSF
  • Lower capital growth off a lower capital value equates to less equity at retirement
  • Higher ongoing maintenance costs, eat into your rental income
  • Low to no depreciation benefits ensures you pay more income tax
  • More cash required to fund the property every month, means a lower retirement value for you at retirement

NB :  Results of New Property could be

  • 13.64% Return on Investment
  • -$37 per week cash flow negative in year 1
  • $3,862 Cash Flow Positive over 10 years
  • $409,530 Equity in year 10 at 5% capital growth
    • $67,827 higher

New Property Financials for Demonstration Purposes only 

Note : higher rent, lower stamp duty, lower maintenance, higher return on investment, less cash needed to fund investment on a monthly basis, higher compounded capital growth


SMSF Property Financials

Cash Flow Over 10 years could be $3,862 positive

SMSF Property Cash Flow Scenario

NB :  Results of Existing Property could be

  • 10.52% Return on Investment
  • -$87 per week cash flow negative in year 1
  • -$30,881 Cash Flow Positive over 10 years
  • $341,703 Equity in year 10 at 5% capital growth
    • -$67,827 lower

Existing and lower priced Property

Note : lower rent, higher stamp duty, cosmetic upgrade costs, higher maintenance, lower return on investment, more cash needed to fund investment on a monthly basis, lower compounded capital growth

SMSF Property

Cash flow over 10 years could be -$30,881

SMSF Property Financials

All numbers shared across this website are for demonstration purposes only and will alter according to market conditions, the investment vehicle and other factors which will affect your investment. We are not financial planners and are not offering any financial advice, merely sharing investment logic with you. For advice, speak to your accountant or industry professional. See disclaimer for more.