Setting up SMSF to invest in real estate

Hi Natasha –

There is no minimum to set up a SMSF, it really depends on your investment objective. In relation to purchasing property within an SMSF, I see $100k balance as achievable, however this will depend on your purchase price of property. The reason the minimum balance has decreased is due to the fact there are many providers providing Admin services for less than $1000 annually, however, if you need a little tender loving care I would not reccomend a online service particularly when it comes to purchasing property, as you will need an expereienced advisor to walk you through the process including education around:
1. SMSF set up and structure / Deed and investment strategy
2. Bare Trust
3. Rollover of super and insurance considerations
4. Bank account
5. Finance pre-approval (recommended to determine your borrowing power)
6. Education of property investing (not all types of property will be suitable for you)
7. Contract of sale and solicitor/ conveyancer
8. cash flow analysis to ensure the property is making money and you are not relying on contributions
9. Costs involved in 1-8 which generally will be fixed with no surprises
10. Contribution strategies both concessional and non concessional.

This is not a complete list, however, you will need to be aware of the above as all will need to considered in the process.

I trust this helps.

Cheers, Ivan