Can I use my Super to buy an investment property? It’s a question we hear a lot here at No1 Property Guide. And a lot of the time, our clients are surprised to find out that buying an investment property with Super is simpler than they think!
After more than 20 years in the property industry, Darren Walters has a deep understanding of the benefits of property investment. Which is why he decided to start offering Self Managed Super Fund property investment options to clients across Australia.
But there are a few things you’ll need to know before you start using your Super to invest in property. So to help you out, why we created this guide to show you just how easy it is, and what you’ll need to know to succeed.
Or, if you’re ready to begin your property investment journey, complete our pre-qualification process to get started.
Can I Afford an Investment Property?
This is the first thing you’ll need to work out. And it will depend on how much Super you have. As well as what contributions you can make in the future. There’s no hard or fast rule about how much Super you need. But obviously the more Super you have the easier you’ll find the investment journey.
There are also additional fees for the set up and management of your Self Managed Super Fund (SMSF), so you’ll need to consider these and future costs when planning.
If you’re looking to set up a SMSF yourself and want to have full control of your portfolio, you will need to find trustworthy companies to help manage your fund. If you’re looking to invest through Super at No1 Property Guide on the other hand, we handle most of these tasks for you. And because Darren has built relationships with industry professionals over the years, we are able to perform these at a much more affordable rate.
No1 Property Guide always recommends you seek professional financial and legal advice before deciding on any investment or large financial decision.
How Much Can I Borrow for an Investment Property?
A core part of whether you can afford an investment property will be how much you can borrow. Most lenders will have stricter lending conditions for a loan using Super. Lenders will usually cap the loan amount to around 70% of the property’s value, but there are some lenders who are willing to go higher.
You also can’t use your full Super balance as a deposit to increase your borrowing capacity. Legally you have to leave a buffer in your Super. This will lower your deposit and can affect your total borrowing power.
A lot of clients come to me asking “can I use my Super to buy an investment property?” and they’re always surprised when I tell them just how easy it can be. Using your Super to invest in property is a great option for securing the retirement you’ve always dreamt of.
Darren Walters, CEO & Founder of No1 Property Guide
The best way to discover exactly how much you can borrow for an investment property is to complete Darren’s pre-qualification process. This will give you an accurate estimate of your Super’s borrowing capacity. And will help us find all your factual investment options.
How to Start Investing in Property
Getting started with property investment is actually easier than you think. First, our Investment Specialists will assess your investment options and explain the entire process to you. Then, after calculating your Super’s borrowing capacity, we’ll find a block and floorplan option in an area that we believe has a high potential return on investment.
After handling the paperwork and setting up your SMSF, all you’ll need to do is continue to make contributions to your Super and let our team handle your property needs.
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What to Look for in an Investment Property
Something that can stump a lot of first-time investors is what to look for in an investment property.
It can be a nerve-wracking time trying to pick the perfect property. Between townhouses, duplexes, apartments, or house and land packages, combined with different locations and additional features, finding the right investment property can be a tough decision. Which is why the No1 Property Guide team handles it all for you.
Our Investment Specialists have years of experience in selecting properties and locations that are likely to provide a good return. There are a few key things we look for in an investment property to ensure we’re offering clients the best.
Strong capital growth potential is the main aspect we look for. The whole idea of an investment property is to create wealth. Which is why we focus on areas and property types that historically have strong capital growth and rental return.
This means we prioritise select areas, usually the outer suburbs. We also look for areas with plenty of land, and good access to schools, public parks, and shopping centres etc.
Darren has more than 20 years’ experience in property and has an in-depth knowledge of how the industry works. This experience is what allows us to confidently build investment properties for our clients across Australia.
Begin Your Investment Journey Today
If you’ve been asking yourself “can I use my Super to buy an investment property?” then now is the time to find out! No1 Property Guide is dedicated to guiding investors like you through the process to give you the best chance of success. The first step on your journey is to complete our pre-qualification. This will allow our Investment Specialists to calculate your Super’s borrowing capacity and discover your factual investment options.
Contact the No1 Property Guide team to discover how you can use your Super to buy an investment property today.