How about the good old "spread your risk" strategy.  Not having all the same kind of properties in the investment portfolio

Hi Sunny

You can always do more with an independant property (ie a house).  With a flat you are somewhat constrained by body corporate.

If you are considering buying into a certain suburb, spend some time there.  Do a few shopping missions at the local shopping centre.  Go for a drive around to understand which streets are preferable.  More importantly, do a couple of commutes to and from the suburb during peak hour.  And I mean sample what it is like to drive, and also sample what it is like to take the train.  You might suddenly realize that day to day life in the suburb is going to be epic, just getting yourself to and from work.  Or you might decide that the suburb is really friendly, or that it has lpts of sporting facilities that apply to you and your family. 

Interestingly, I have friends that live closer into the city but find it near impossible to get on the train because all trains are full by the time they reach the stations near the city.

Very nice!

$1200 yearly fee is excessive.  What is this for exactly?  I just went through my SMSF's first tax year end and was charged only $660.

Don't be greedy.

Also, that the rule of "do not get to know your tenants, it is a business transaction" is not always appropriate.  My tenants are my customers.  If I understand their needs, I can ensure my product is continuing to meet their needs.  I am also a big believer that if tenants actually see the landlord as a person, they are less likely to take the mickey and go into rental arrears and such.

Hi Terry, my smsf borrowed only $180k from St George Bank. I agree $50k is not quite rough but based on what I did with my super, within about a year of regular contributions, or sooner if larger contributions are made, Brady would have enough in the super fund to get started.

http://www.ato.gov.au/content/00325402.htm

"The government will remove eligibility for the 50% discount on capital gains earned after 8 May 2012 by non-residents on taxable Australian property, such as real estate and mining assets. Non-residents will still be entitled to a discount on capital gains accrued prior to Budget night (after offsetting any capital losses), provided they choose to value the asset as at that time."

Reasons to pay off debt would include:

If you find you don't sleep so well at night due to being slightly uncomfortable with your debt level, or if you spend all your days worrying about it, then perhaps your life would be happier if the debt level were a bit lower.

If there is some money left from your rental roll after paying bills and the mortgage, then this money can be used towards your living costs.  If it is a lot of money then one could say you are able to retire.  Seeing as this is the main objective everyone has, then paying down some of the debt is not a silly idea.

Property Investing is something that requires you to be in it for a good few years before you can start to enjoy the fruits of your efforts.  No need for you to have no life or be stressed out of your mind for years in the meantime.

Hi Brady

I have set up my own SMSF in the last year and used it to buy a property.  In a nutshell, I found a great accountant who set up the super fund an corporate trustee for me for $1600.  There a plenty of ripoff artists out there charging massive fees for what is not very hard.

All in all, if you want to know exactly how many dollars I spent on setting up my smsf, getting everything in order, paying deposit and stamp duty (yes, the smsf must pay stamp duty if it is an established property), the total funds used to set up and get first property was $62,555.  Part of this was the 20%.  The St George Bank loaned the remaining 80%.  The price of the property was $226k.  If my smsf sells it within the first year of ownership and makes a gain, the gain is taxed at 15%.  Thereafter it is 10%….. or 0% if sold after you are retired.

What you want to do is set up your smsf, roll all your super funds into it, and then direct all your regular employer super contributions into it (straight into your smsf's bank account).  Shortly you'll have enough to buy.