Self Managed Super Fund Property

High Yielding Investment Property

How to maximise your return on investment in your SMSF

Are you looking for a risk mitigated, high yielding investment property, yield linked to CPI and guaranteed for 20 years?

Where you Invest say $650k to earn an income of $100k* pa, linked to CPI

Whether looking for that extra income to pay down your own home loan or create another $100k in Super

Industry Funds continue to perform poorly, dramatically affecting any compound growth potential for you and thus a far lower end value at the time of you wanting to retire. Long term industry super funds perform at 5% – 7% over the life of your investment. Meaning it will take you around 15 years to double your capital

If you increased it to even 10% average, every 7.2 years your Investment Value would double!

What if you earned 15% pa on the same monies in a risk mitigated investment which is linked to CPI (meaning income increases) and guaranteed for 20 years

Read more here

SDA Property

NDIS Property for a SMSF

Looking for a high yield, risk mitigated investment property in your Super?

Can you imagine the ideal investment with a yield of around 15%, underpinned by a property you own, in which you are doing a massive good turn by housing someone with a disability …. we call this a win-win-win Investment.

The Australian Government have a major looming issue in that there are over 400,000 people with disability who need a place to call home, with most wanting to live as normal a life as possible within our communities.

Our government is unable to provide housing and have thus incentivised investors who kindly put up their hands to secure a SDA dwelling and rent it out to tenants who qualify under the NDIS scheme

For doing so, the government will :

  • Guarantee your income for 20 years
  • Link the rental income to CPI

Help us make a difference & accommodate as many humans with disability in purposefully built homes & make a positive impact, when you give someone with a disability the gift of “the of living as normal a life as possible, that includes independence and an ability to thrive.”


Read more here

SDA Property investment for SMSF

What is SDA Property under the NDIS Scheme


Stock Market too volatile to protect your Life Savings in Super?
Industry and Retail Funds Performance not meeting your expectations and requirements?
Wanting consistent yields of 7% to 18% or thereabouts?
Looking to mitigate your investment risk profile?

By answering yes to one of the above or more then you would want to understand how a NDIS Investment Property or SDA Property Investment could be a solution for your SMSF requirements.

When investing in a Special Disability Accommodation Property you are giving your Super choice and an element of much needed control as SDA Property includes several risk mitigation criteria which includes higher than market yields, backed up by the Australian Federal Government for a period of 20 years, where your rental income is linked to CPI having the added advantage of ensuring your yield increases alongside inflation.

Investing in Bricks and Mortar over a 7 – 10 year period is viewed as a low risk profile investment. When you have an investment underpinned by Federal Government, as part of the National Disability Insurance Scheme, you could achieve a sense of comfort knowing your investment is primarily de-risked.

Why SDA Property

There is a tragic undersupply, exacerbated by a growing demand for rental accommodation to comply with and meet the needs of a tenant with disability.

With around 400,000 fellow humans in the NDIS and around 28,000 who have made application for independent housing opportunity the government is just unable to meet this growing need.

There are also around 6,000 young people with disability housed in Aged Care facilities who are doing it tough as this just does not suit them. Why be ‘locked up’ in a facility that is designed to house our elderley population just because you are disadvantaged by a disability. For goodness sakes, this is a dire situation and we need to help where we can.

This also means that 6,000 elderly people we love and care for are unable to get into the aged care system because the ‘wrong’ type of person is occupying a much needed bed.

A win-win Investment

By now you may realise that where there is a major (and growing problem), therein lies your investment opportunity.

The Australian Government put in place a significant annual budget to encourage you the investor to put your hand up so that you may become part of the solution in providing a new dwelling in which a person with disability who is approved under the NDIS can become your tenant.

For doing this, your incentive is two fold :

  • Very high rental yields, above market rates over a 20 year period
  • A social do excellent, feel great investment by giving someone who is less able than us the opportunity of living as normal a life in and amongst our communities

Your investment includes

  • Above market yields
  • Risk Mitigated Investment
  • Ability to pay off the loan in 7 – 10 years
  • Creation of an excellent residual income stream for your Super
  • Peg your income alongside CPI
  • Making an incredible positive impact on someone less able than we are

“a win/win for Investors with significant social outcomes”


Informed Investment Decision

Read more here on how you can secure a sound investment into bricks and mortar which is risk mitigated, whilst making a positive impact

SDA Investment Property

Real Estate Tax Deductions

Residential Property Tax Deductions in a SMSF

Residential Property

Residential Property in a Self Managed Super Fund under a lease agreement with tenants paying rent will incur expenses relating to the property which can be claimed and include the following :

Property administration

  • Insurance (building, contents, public liability)
  • Advertising for tenants
  • Property agent’s fees and commission
  • Some legal expenses
  • Interest expenses – if the property is part of a limited recourse borrowing arrangement

Rates and taxes 

  • Body corporate fees and charges
  • Council rates
  • Water and electricity paid by landlord, but not those paid by the tenant
  • Land tax

Property maintenance

  • Cleaning the property
  • Gardening and lawn mowing
  • Pest control
  • Repairs and maintenance but not the cost of improvements
  • Capital works deductions
  • Travel expenses to inspect property, not deductible after 1 July 2017

Depreciation

  • Depreciation of the property can be claimed against contributions made to your SMSF

Talk to your Accountant

What we are sharing with you is of a general nature and your accountant or industry professional will clarify what you are able to claim which will vary according to type of property and tenancy

If you have made improvements or are considering making improvements understand the financial and tax implications and whether or not you are legally able to make the improvements (especially where there are borrowings in the SMSF on this property)

Other types of rental property could include Air B&B, Holiday House, Bed and Breakfast, Vacant Land

Tax Deductions are there for the taking

  • On speaking with your accountant or industry professional who is able to provide tax advice, take advantage of all claims you have at your disposal so that the tax man and your tenant are helping contribute towards your retirement planning


REMEMBER :  Not all property is Investment Grade and very few residential properties lend themselves to being investment grade especially residential property in a SMSF. We understand residential property in Super and can point you in the right direction when it comes to identifying which property and which property strategy would work best for you and your Self Managed Super Fund requirements.

As a trustee of your SMSF; “it is imperative that you get your Investment Decision right at the outset, as this will impact on your return on investment over the next 7 – 10 years or longer!”

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