Yeah The Girls 40 Plus Digital Magazine - Magazine - Page 63
63
June 2025
TURN SUPER INTO
STRATEGY, AND
PROPERTY INTO
PASSIVE INCOME.
Here’s how the strategy works using Equity:
1.Take a loan secured against the equity in your home of $190,000 to cover the 20% deposit
of $150,000 plus stamp duty and costs $40,000.
2.Take a second loan of $600,000 secured against the new investment property to cover the
80% balance of the purchase price.
3.Both loans are structured as investment loans, making the interest tax-deductible.
4.You can claim interest, depreciation and operating costs against your taxable income,
potentially getting a significant portion of your tax back each year.
5.Based on current interest rates, your loan repayments for both investment loans totalling
$790,000 would be approx. $4,788 per month.
6.With $6,930 in monthly rental income ($1,600 pw), this provides a surplus of approx.
$2,145 per month less $1,000/month for costs like insurance, council rates, and property
management.
7.After you have made loan repayments, and covered all monthly costs, you will be left with
a passive income of just over $1,100 per month.
Here’s how the strategy works using superannuation:
1.Use $180,000 from your superannuation to cover the 20% deposit, stamp duty and costs.
2.Take out an SMSF loan of $600,000 to cover the 80% balance of the purchase price.
3.Using current SMSF loan rates your monthly loan repayments would be approx. $4,089.
4.With $6,930 in monthly rental income, this will give you a surplus paid into your SMSF of
approx. $2,840 per month.
5.After covering ongoing costs of insurance, council rates, and property management fees
(around $1,000/month), you’re still earning $1,800 per month into your super fund.
6.If you pay this extra income onto the property it will be paid off in 13 years, and you will
receive the full rental income of $1,600 per week in retirement with a property that could
double in value over 10-15 years.
