WE Aviation · Worked example · illustrative, not a real client
Sometimes the most useful advice is “not yet”. The example below is not a real client, but it is a conversation we have often.
The situation
A first officer in his forties wanted to set up a self managed super fund and buy an investment property inside it. On paper, his balance was big enough.
What we modelled
- The borrowing costs and the running costs of the fund.
- The concentration risk of one property against his whole retirement.
- The question pilots need asked: what happens to the fund’s cashflow if he loses his medical and the contributions stop?
On his numbers it didn’t stack up. We told him so, and built the same exposure a simpler way. He is still a client, which is rather the point.
The rules have moved since
From August 2026 an SMSF can only borrow to buy real property where it is business premises, so that residential strategy is off the table for everyone now. Buying the premises your own business trades from is still an option, and for business owners it is often the better idea anyway.
An SMSF can be a great structure. It just has to fit you, not the other way round.
Illustrative example only. This is not a real client. Whether an SMSF suits you depends on your own circumstances. This is general advice only and does not take into account your objectives, financial situation or needs. Consider whether it is appropriate for you and read our Financial Services Guide before acting. Andre Dirckze (AR 395157) and Wealth Effect Group (CAR 424768) are Authorised Representatives of Boston Reed Pty Ltd ABN 89 091 004 885, AFSL 225738.