Can you do a video on the stuff you need to go through for setting up a smsf
@angelaleahy14784 ай бұрын
W 6:56 e only had $126k as a couple to put into a SMSF which we did around 2015, bought two properties in Waverley tasmania prices went up so we sold one and bought another in Bunbury WA. Prices have continued to climb and we now have $1.1 million in assets with debt of $170k. A big improvement in our super balance!
@PersonalFinancewithRaviSharma4 ай бұрын
BOOM!! How good is that! Yeah when prices were lower - the balance needed to be lower. Well done, love hearing stories like this 🙌🏽
@jonathanroy59247 ай бұрын
Great video Ravi. Spoke to an accountant recently and it’s a couple k to setup a SMSF and 1-2k per year accounting fee but seems much better than just investing in my current fund
@fionadevries88565 ай бұрын
Very helpful visual explanation of purchasing property with a SMSF and how it can yield a great result in the future. Thank you Ravi.
@sheshitritton78686 ай бұрын
Amazing video, thank you!
@PersonalFinancewithRaviSharma6 ай бұрын
Glad you liked it!
@littlebluefishy2 ай бұрын
Hello, great video. May I know if i can use my super to buy a property and live in it?
@ArifulIslam-z3r7 ай бұрын
In 10 years time there won’t be any houses at $500k. In fact there aren’t that many now.
@jem64117 ай бұрын
Exactly
@Tanveer977 ай бұрын
lol. I was going to comment the same then saw your comment
@Francie31837 ай бұрын
Loads of units in Melbourne at that price it doesn't have to be a 3 bedroom house
@jem64117 ай бұрын
@@Francie3183 1. why would you buy in a location where there are 'loads' of supply? 2. You sure they will be below 500k in 10 years?
@Francie31837 ай бұрын
@@jem6411 not apartments but units even in good areas can be 500k ...there easy to rent and go up in value decently ...not the ideal obviously but still an option...plenty townhouses in outer suburbs for that price also ...by retirement age your still going to be well ahead no matter what so long as u get something
@jenniferjennifer36047 ай бұрын
Well explained Ravi. Just wondering in 10 years time, are there still houses around $500k in Australia worth investing, in terms of growth and positive cash flow?
@JackJones-zg3nd4 ай бұрын
No, he didn't assume the conservative growth estimate of 5.6% like he did when calculating the income benefits. After 10 years each deposit would be roughly $170k, not $130k. Meaning you could only buy 1 additional property, not two.
@madhavibeemadi28985 ай бұрын
Nice video Ravi of explaining the calculation. It certainly looks promising on paper but I am facing the reality of no capital growth in property even after 8 years of investment. Very keen to know where ur focus areas are for property purchase
@troyshah55014 ай бұрын
how is it possible to have no CG in 8 years? We saw multiple booms in this time...where did you buy?
@eggs-benny7 ай бұрын
Great video Ravi! Love the financial breakdown
@PersonalFinancewithRaviSharma7 ай бұрын
Glad you liked it!
@anthonyfox53377 ай бұрын
As an owner of multiple rental properties, your rental yield estimates are excessive. My rental yield after costs is 2% I understand your promoting a business but try and be realistic.
@angelaleahy14787 ай бұрын
Depends where you invest. I would never invest for 2% returns no matter what the potential but not guaranteed capital return was.
@dustblowingman3 ай бұрын
He is being realistic based off the properties they look for for their clients. They wouldn't touch 2% yield properties
@chookie1317 ай бұрын
Hey Ravi great video - just a question is the $130k including your fee?
@PersonalFinancewithRaviSharma7 ай бұрын
Yeah :)
@theowenssailingdiary52393 ай бұрын
The only reason property outperforms some assets is purely leverage. Despite what you property gurus say, you have a major concentration risk. BTW, my super uses leverage.
@aussiealts3507Ай бұрын
What about land taxes ? That's a killer.
@wasca5 ай бұрын
Hang on! Around the 16 minute mark you've fast forwarded 10 years and then suggested that you could find 4 properties worth $500,000 each to reinvest in? Did I miss something here or did you just use 10 year old property prices in your sum? Do you really believe there will be property worth only $500,000 in 10 years time?
@drfaheemahmad997 ай бұрын
I think there is a comparison issue (28k vs 101k return). You should be comparing SMSF return with super account return. For this you should be showing compound return of 300k over 20 years. That is 1.4M after 20 yrs if that couple keep adding 12k a year as employer contribution. That deposit can give you 58k a year at 4% return at 60 yrs of age
@PersonalFinancewithRaviSharma7 ай бұрын
By doing that you don't consider ongoing cashflow and instead use the returns to continue compounding whereas in my example you get best of both worlds with the properties increasing every year with compounding growth and still getting the cashflow + this would be in addition to the employer contributions. Hope that makes sense :)
@NS-kt1sj7 ай бұрын
Thanks Ravi!
@PersonalFinancewithRaviSharma7 ай бұрын
My pleasure!
@mowtime7 ай бұрын
Haha hey, I’m literally eating avocado on toast at a cafe lol. It’s a cheap joint though. 👌🏻
@PersonalFinancewithRaviSharma7 ай бұрын
hahah love it!
@roamingalone52267 ай бұрын
Your assumption is not realistic to reflect today's super balance in general especially the couple example you mentioned. Also assumption you took for Australian owning home outright and no mortgage is rather a dream now.
@jaychichu04047 ай бұрын
Hmm.. SMSF management/accounting fee? Minimum balance to start SMSF?
@craigwhitwell7 ай бұрын
I paid about $1800 to setup, I pay $170 a month accounting fee. If buying a property you need entities setup and trusts etc which was about another $2000 by memory. I use New Brighton Capital accounting to do it all but there are others cheaper out there. I had $100k to start combined (mine and wife's supers merged). For me was worth is as super has over doubled in 3 years but look into all the rules first and look at SMSF loans as there are limited borrowers and interest is higher. I think at moment mines about 8.5%
@eddiifuentes92987 ай бұрын
I'm not sure that it suits me Ravi. I have a healthy super and the compounding interest I make by just leaving it there outweighs your example. Maybe beneficial if I had a lower super balance.
@PersonalFinancewithRaviSharma7 ай бұрын
Thats great! Always opportunities to diversify and take advantage of leveraged returns too :)
@troyshah55014 ай бұрын
how much is your annual growth in last 3 or 5 years?
@Hooooodad7 ай бұрын
Nice vid man
@PersonalFinancewithRaviSharma7 ай бұрын
Thank you!
@Hooooodad7 ай бұрын
@@PersonalFinancewithRaviSharma I'm in Sydney , are we able to catchup for a chat ?
@AussieMatiasАй бұрын
In your example you talk about selling the 2 properties after 10yrs to pull out $600k equity. Then you talk about buying 4 properties using this $600k at the same $500k price from 10yrs earlier. Are you now trying to find even cheaper property of different type and market? Or am I misunderstanding?
@radiopete72904 ай бұрын
what do you mean 10 ex?
@craigwhitwell7 ай бұрын
Hi Ravi. I did this in 2021 and bought 1 side of a duplex in elizabeth downs SA $205k now valued $360k had to do 30% deposit as they considered it outside metro ring. Interest rates for SMSF loans are higher and luckily rent kept up with costs just. Want to sell when value at $450k which will leave me approx $250k after fees to redeploy as next deposit. With the higher interest rates though it appears cash neutral from rent would be near impossible. Say 200k used and purchase at 650k the loan of $450k would need too high repayments. Are your examples taking this extra loan repayments into account or are you managing much higher rents?
@PersonalFinancewithRaviSharma7 ай бұрын
That's cracker! Yeah rental growth + hard to include what employer contributions would actually equate to as its based on personal income and different for everyone.
@lahoriski6 ай бұрын
Do ur maths again. 500k after 10 yrs, 50% increase means 500 + 250 = 750k not 1.5mil.
@adamphillips47867 ай бұрын
Ravi, your assumptions are wrong. You can't "rinse and repeat" a process in 10 and 20 years. What your saying is that your $500000 homes purchased today will grow by 6% year on year. No problem with that. But your then saying that in 10 years time, while you homes are hitting the 1 million mark, there will be homes that have sat idle for 10 years that will be for sale at $500000 ready to all of a sudden start growing by 6%. When you then say you can do it again after 20 years...its complete nonsense. Remember those $500000 homes sitting on land that you believe are going to be there for $500000 in 10 years and 20 years time, have already been built.
@MMVTW7 ай бұрын
Not sat idle. House prices will be higher which will force people to buy further from cities, so they create infrastructure like freeways and trains to go there and create new suburbs or subdivide existing ones. You can then have houses that are 500k
@robguz10077 ай бұрын
leave the woke shit to yourself. my mum stayed at home, it's fine
@PersonalFinancewithRaviSharma7 ай бұрын
What’s woke shit? 🤨
@kurt45667 ай бұрын
“In 10 years you’ll be able to buy 4 properties at $500k each, in locations that are going to grow 5% a year” 😂 Reverse engineering that to today that’s like saying you can find $200k properties in growth areas Comedy
@PersonalFinancewithRaviSharma7 ай бұрын
I’m a part time comedian 🫡
@tomr77683 ай бұрын
I've gone through all your comments here this is your only response to the elephant in the room? Are you a snake oil salesman or genuinely don't understand what you're trying to sell? 😂 @PersonalFinancewithRaviSharma
@Ada_Isabella6 ай бұрын
I tried booking a call. I finalised the 7-minute form. Also provided my details to download the free book as a start but the links or your online bookings don't work. Unless it is something to do with me? Not sure.
@PersonalFinancewithRaviSharma6 ай бұрын
Damn thats annoying! Shoot me an email and I’ll get this sorted asap for you 🙏 ravi@searchpropertyau.com.au