Buying Property with Self Managed Super Fund

[@joewrigley399]

Hey there, great vid. Using your example, say that property in 2 years was valued at 1.5 million, what happens with that extra 500k? Can you potentially buy another property etc? Cheers

[@thekienlam7426]

You forgot to mention your borrowing capacity rely on the salary and wages of the members of your fund

[@georgesamios_madd]

@@thekienlam7426 thanks for the comment, yes, that plus new rental income, other investment in the SMSF.. appreciate you following!

[@eyespy1847]

Question if i purchase a large investment property for e.g 2 hectares with a house can i rent out the house and stay on the land in a seperate dwelling as a "caretaker" of the land obviously setting up a a.b.n and "working" as seperate entity

[@juanruiz1897]

What happens if the rent doesn’t cover the mortgage?

[@georgesamios_madd]

Great question, in order to get the loan approved we need to assume the actual rate plus a buffer of 3% increase rates increase. The rent most probably won’t cover the mortgage, the banks will use other income the SMSF gets such as your ‘standard contributions, any extra contributions or salary sacrifice plus the rent from the new investment property. Hope that makes sense