Can you use your super for your house Deposit?
Hi!
I'm Ryan Mclean; I'm from Positive Cash Flow Australia.com.au and today we're going to
talk about using a super for a house deposit.
Can it be done?
What are the guidelines around it?
I just want to throw out a quick disclaimer to say that I'm not certified tax executive.
So, I do suggest you go and see a professional if you're thinking of doing this yourself.
Can you use your Super for a house deposit?
Recently, the Australian government has allowed us to use our self-managed Super funds to
obtain loans for property, which can be great because that means we can become property
investors using our Super funds.
You can use your super fund in most cases for a house deposit if it is an investment
Property.
So, you're going to need use your Super money to purchase an investment property because
what's the point of your Super?
It is to generate wealth for you that you can live off when you retire, so that you
don't have to go to the government and ask them for money.
In most circumstances yes, you can use your Super if it's going to be for an investment
property there are rules around how much you can borrow!
Whether it can be made with a negative liquid or positive liquid and so forth so, speak
to a professional about that.
Unfortunately you can't us your super to buy your own house, in most circumstances.
Super, it's designed as an investment being built to help you invest.
It's not there to give you the luxuries of your life.
You can't access it until you're old; until you're retired; until you're 65 for a reason,
they want you to build that over time, over your life and it's like a security blanket
for the government.
So, the government doesn't want you to use it just to buy your own house, they want you
to purchase investment properties.
You need to be aware that the tax advantages when investing using your Super fund aren't
the same as when you're investing using your own money.
Lot of the tax grades and tax ride-offs that people use negative liquid properties aren't
necessarily available through their Super funds so, if you're earning a great deal of
money in and want to save money in your tax then the super fund might not be the best
way to go; but, always speak to a professional about it if you're considering doing it.
You can't access the money in the super fund until you retire.
There are some circumstances outside of your timing such as emergencies when you can't
access your Super fund but, generally speaking you can't access it till you retire.
So, even if you're building up this massive portfolio of properties using your self-made
super fund, you can't access the passing income from those properties until you retire.
So, that's something that needs to be taken into account before you go ahead and start
investing using this strategy.
There are extra costs with self-managed Super funds that you need to consider as well; a
lot of investors, a lot of financial planners, a lot of tax accounts will that need to reach
a certain threshold of finances in your self-managed super fund.
I've heard people say, a hundred thousand dollars; I've heard people say, seventy five
thousand dollars!
I've heard people say, hundred and fifty thousand dollars; as kind of a benchmark minimum of
how much money you should have in your Super fund because with self-made super fund there's
extra cost to keep that fund going but then obviously if you can generate great returns
then that's going to pay for those extra costs.
If you've probably got 10 thousand dollars in your super fund and you're going to earn
enough in growth that it's going to off-set the couple of grade extra costs that you're
going to experience; that's something that you need to lay-out with your account into
the financial planner.
So, I'm Ryan Mclean from PositiveCashFlowAustralia.com.au You can find more videos, audio and articles
just like this.
You can go to positivecashflowaustralia.com.au or if you're on your mobile phone you can
go to PCA.IM.
Thank you.