James Wrigley

You could end up in jail.

As extreme as this goes, you could end up being taxed and lose half of your super funding.

I don't know if anybody ever has ended up in jail, have they?

No, I don't know that they have, but that's kind of where it goes.

So the penalties can be quite severe.

Definitely.

So the lending environment, and it's only really going to be commercial now that people will be able to borrow money for, the lending environment in superannuation, self-managed super fund land is very different to an individual.

So just at an LVR level, how much deposit do you have to put down versus how much will the bank lend you is very different in super fund land.

then you have to be able to service that loan that you're taking on from a combination of rent and super contributions.

You can for commercial, not for residential.

For commercial, yeah.

So not for residential, yeah.

So on the commercial side of things.

So you always needed more money anyway because you had to put a bigger deposit than if you were trying to buy a property in your own name.

But then you want to make sure that there's some buffers in place quite aside from a diversified portfolio.

Like what if you don't have a tenant for a period of time?

What if something breaks and you've got a tax bill that you need to pay?

So that always, we would always, when we were doing these strategies, we would be suggesting to most people that you'd want close to half of the purchase price actually in cash when you were going through these property transactions.

You wouldn't be putting half of it up.

You would be putting less of that.