When it comes to making the most out of our SMSF we are constantly being bombarded with a thousand different products all promising great returns. It’s hard to know which way to turn.
Often investment solutions are focused around shares, managed funds, SMSF Property Development, bonds, fixed income, and the list goes on and on. And frankly, some of those investments didn’t fair too well in the GFC.
But, before we get into the nuts and the bolts, let’s check out three stats:
- Our average life expectancy is around 85 according ABS Statistics, this means if you retire at 65 you have to make your investments last for 20 years.
- According to the Australian government a couple needs $59,160 a year for a comfortable retirement.
- You will need around $1.5 million in super to afford this comfortable retirement.
What should I do with my SMSF?
It’s up to you to determine what kind of investment is the right one for you. Here at SMSF Property Capital we are the SMSF Property Development specialists.
We believe property development is something everyone should have access to, not just those with lots of money to throw around.
One of the solutions we offer, is for people who want to invest with the security of developable land with no bank debt, but don’t have the funds to bankroll a development themselves.
What kind of returns should I be getting in my SMSF?
Everyone is different, we all have different risk profiles, different investment preferences, and different amounts of time until we retire. It’s important you decide what kind of risk you want when it comes to your super. This risk will generally determine the kinds of returns you can expect to receive on your investments.
Here at SMSF Property Capital we invest in property developments utilising NO BANK DEBT. Each development is different, with returning projected profit amounts of up to an estimated return of around 30% in profit*. That’s not bad considering there is no bank debt involved. Remember:
No bank debt = no forced bank sale if something goes wrong
Again, we cannot stress enough it’s important any investments are chosen based around your personal circumstance, risk appetite etc. When in doubt it is always best to chat to an independent adviser who can chat to you about the options available to you.
How much should I invest?
Depending on the option you choose there is generally a minimum amount you have to invest. Through SMSF Property Capital, our minimum is $5,000 for one of our projects, or $20,000 for our monthly income product.
Other types of investments may see you needing to invest a minimum of $50,000 or even $100,000!
Through us, you no longer have to be a millionaire in order to get involved in No Bank Debt SMSF Property Development.
How do I reach $1.5 million in super?!
It takes a lot of hard work, saving, time and the right investments to help you get to your magic number in super. For some people $1.5 million won’t be enough, and for others it will be much more then they will need. It all depends on what sort of lifestyle you desire and if this is achievable.
Through making sure you are selecting investments which suit you, provide the kind of return you are after and allow you to continue to grow your wealth you may be able to hit this number.
And of course, by following Warren Buffet’s rule’s of investing –
- Rule number One – Never Lose Money
- Rule number Two – Never Forget Rule Number 1
When it comes to superannuation, or anything finance related there really is no magic bullet. It’s important you choose options which suit you and your lifestyle. SMSF Property Development is just one investment you can use to help grow your superannuation helping get you retirement ready.
*Based on the Park Avenue Development