Category: Investment Strategy

Investment Strategy

Sep. 6, 2016 By Smart Property Off

Why Is Servicing An SMSF Loan So Hard?

Servicing requirements for SMSF loans under the traditional LRBA structure are incredibly demanding which can be frustrating for SMSF trustees but when you crunch the figures it’s not so silly. How much an SMSF or individuals can borrow and therefore purchase for eventually comes down to two things: their incomes and their deposit. Deposit Most SMSF lenders have now introduced minimum liquidity requirements, meaning that not all the funds in an SMSF can be used toward the purchase of a property. These requirements vary from lenders to lenders but a 10% to 20% of the fund value range would cover scenario. So if your SMSF has a $200,000 balance, only $160,000 to $180,000 will be able to be…

Jul. 7, 2016 By Smart Property Off

Getting Past Investment Property #1

Many property investment books and magazines promote the dream of accumulating a multiple property portfolio. A common strategy goes something like this: Acquire your first investment property As you build up more equity, refinance and put down a deposit on your next property Follow this plan to acquire 10 properties over a long timeframe – perhaps 20 years Sell down some of the properties when you retire so you own 5 properties outright, which will provide you with a handsome passive income, indexed to inflation, for the rest of your life Pursuing a goal like this is admirable – but how many investors actually succeed with this strategy? Not that many, if ATO statistics are anything to go…

Jan. 5, 2016 By Smart Property Off

The Top 11 Property Investment Strategies Used By Australian Investors

Property investment is a game that can be approached from many angles, and there are many property investment strategies to choose from. Many advisors favour one strategy over the others (usually the very same strategy in which they happen to specialise). But the truth is, there are a multiple ways to succeed as a property investor. Here are the top 10 broad property investment strategies used in Australia today. Some of the strategies may overlap, depending on how you apply them.