Appropriate SMSF Properties

If you are looking to purchase a property through your SMSF the common question is ‘what type of property should I buy?’. We’ve highlighted our 9 key criteria for selecting SMSF properties:

  • Good rental income (4.5-5%+) and long term capital growth (7-9%+).
  • Minimum maintenance or repairs for long term holding.
  • Minimum rental vacancy rate and easy to attract good quality tenant.
  • Property always in demand during good times and bad times.
  • Minimum stamp duty and ready to rent with no extra set up cost.
  • Purchase price at or below market valuation to avoid difficulty at settlement.
  • Price range meets your purchasing capacity from your SMSF.
  • Postcodes and property types allow for SMSF borrowing from banks.
  • Lenders use postcodes to determine which areas they are happy to lend in. Postcodes identify the suburb which is then graded for risk based on such things as population, demographics and sales performance according to historical as well as current information. It’s this data that will allow a Lender to allocate the appropriate Loan to Valuation ratio (LVR) according to the risk profile. Obviously, suburbs that have a solid history will be provided with LVRs in the higher ranges while riskier suburbs will not. It’s also worth noting that postcodes are reviewed on a regular basis and amended where required. Mortgage Insurers and Banks will share this information so there is common ground for lending in the marketplace.


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Investors Direct Financial Group

Investors Direct Financial Group (IDFG) was established in 2001.
Our mission is to help our clients achieve and maintain their financial freedom.

Members of the IDFG Group include:
  • Nanmon Financial Services Pty Ltd, trading as Investors Direct Financial Group (ABN: 52 097 697 820 ; ACL: 402950)
  • ID Property Advisory Pty Ltd (ABN: 69 141 716 412 ; Real Estate Licence: 071792L)
  • Investors Direct Financial Planning Pty Ltd(ABN: 50 141 139 228 ; AFSL: 385827)
  • 8 Star Homes Pty Ltd (ABN: 83 135 066 876)