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SMSF Investment Strategy Example

Let’s look at an SMSF investment strategy example.

Vickie and Stewart, a couple in their mid-thirties, were both keen to invest in property. After deciding to pursue their dream through the avenue of a self managed super fund, they sat down with one of our expert staff, who helped them create an investment strategy based on their particular needs and goals.

Vickie and Stewart live in St Kilda. They planned to purchase a property in their own neighbourhood, due to their first-hand knowledge of the area, giving them an understanding of the local housing and rental markets. After a period of searching, they purchased a modern one-bedroom apartment in the heart of St Kilda, an area they knew to have a strong, steady and sustainable demand for rentals.

Vickie and Stewart had around $100,000 jointly invested in their super fund. Since the price of their apartment was approximately $500,000, Vickie and Stewart were able to finance the required 20% deposit through their SMSF.

With help from our expert staff and access to our exclusive network of financial institutions, Vicki and Stewart had no trouble securing a loan to cover the remaining $400,000.

Vicki and Stewart used the settlement period to secure suitable tenants, leasing their property at $350 per week. With combined super contributions of $20,000 per annum, this was sufficient for Vickie and Stewart to pay off the yearly interest on their bank loan. Their annual income from rental payments was $18,000, which Vickie and Stewart used to further service the mortgage and cover additional costs such as annual body corporate fees.

Vickie and Stewart were assisted throughout this process by the experienced team of advisers at Self Managed Super Fund Company. They helped Vickie and Stewart consolidate their SMSF investment strategy through a range of measures including mortgage insurance and investment diversification strategies.

This is simply one SMSF investment strategy example taken from a broad range of clients who have sought advice and support from Self Managed Super Fund Company.

If you’d like to know more, make an appointment with Self Managed Super Fund Company today.