We did out first purchase in SMSF around 18 months ago and have one more already. Return on actual funds in SMSF since then is around 15 % from the capital growth.
We have an 80 % LVR loan available for our next SMSF purchase. Not sure , but think it's with St George and have serviceability to get one more
Simple strategy
Soon to have four properties . This effectively becomes an index pension . Contributions and planned lump sum contributions will pay this off . I'm not planning on retiring from work but will continue to work part time , because I like my job ( most of the time ) and job will pay for daily living expenses so the Super can pay for the fun things .
Cliff
Well done...
I have just settled one IP in November 2013 with borrowing in SMSF with 80% LVR, only SMSF financials, with St George and offset account, provided personal guarantees (as we are self-employed), and provided only SMSF paperwork (it was not necessary to provide individual or our company financial).
Also, another IP loan just approved and to settle in December 2013 with the same criteria.
I will look for another two next year, as I was told by the broker that government is thinking to reduce LVR to 60% from 80%...perhaps due to increase in SMSF borrowing.
I should point out that we already had 3 properties in SMSF with no borrowing, so I presume some % of rental would be taken into account for serviceability.
Our strategy is to hold and pay off when the land could be subdivided or 3 townhouses approved to be built there, but that's a plan for the future.
So, I really think it depends upon individual situation, how much the financiers will lend, what property, and what does your SMSF already have...
I don't think we can place everyone in the same basket, as with the individual loan scenarios, right?