Client Success #23: Paying Off an SMSF Property Sooner
Property projected to be repaid in: About 16 years, not 30
We met a woman whose newly established SMSF was buying an investment property, and whose priority was to be debt free before she retires. We took the time to understand her fund, her cover and what a 30-year loan would mean for her plans. The property is now projected to be repaid in about 16 years.
Client Snapshot
- Single, with a newly established SMSF
- The SMSF is buying an investment property
- A standard 30-year loan term would run close to retirement
Their Goals
- Have her new SMSF structured well
- Protect her income and assets as her debts increased
- Have the SMSF property paid off before she retires
The Challenges
- The property loan would run close to her retirement
- Fees across her super and the platform were adding up
Our Strategy
- Restructured the SMSF’s investments
- Reduced her super and platform fees
- Put an insurance strategy in place, with premiums structured to be tax deductible
- Set up a contribution strategy that pays the debt down faster
- Built a debt reduction plan for the SMSF property
The Outcome
The property is projected to be repaid in about 16 years rather than 30, debt free well ahead of her retirement, which was her priority. As with any policy, the insurer assesses the claim.
- Property projected to be repaid in
- About 16 years, not 30
- Immediate value
- $4,891 a year
- Super and platform fees reduced
- $2,131 a year
- Estimated income tax saving
- $2,760 a year
- Projected retirement uplift
- $158k
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