Property in a Self Managed Super Fund and Tax Efficiency

Self Managed Super Funds and Investing in Property

Through properT network and our value added services and allied accounting practices & financial planners, you now have access to the complete solution of how to diversify Super Fund monies into Investment Property utilising a SMSF to ensure adequate retirement funds will be available to you. Once again we are not financial planners but work with licensed financial planners or work alongside the Statement of Advice your financial planner has given you.

We will demonstrate : CHOICE of property, CONTROL of making an informed decision, CERTAINTY in knowing the finances and cash flow upfront &  CONTINUITY of holding onto the investment property for as long as it continues to make investment sense to your SMSF and your financial planner

Your financial planner will demonstrate :

  • How you can reduce your Capital Gains Tax to 0%
  • The ability to Diversify your retirement nest egg giving you Choice of where you wish to invest
  • The opportunity to now have a say over your own retirement funds and where they are invested
  • Flexibility of implementing effective Tax Planning Strategies
  • How you can reduce the amount of tax you might pay on other investments down to 15%
  • The ability to pool family assets, to lower overall fees
  • How you can transfer your personal assets into your SMSF
  • The ability of a SMSF to borrow / leverage so that you can purchase an investment property
  • Demonstrate how other members of the fund will continue to receive tax efficient income streams into perpetuity
  • Peace of mind knowing that the structure put in place is managed from beginning to end and that it is legally structured to avoid potential charges a non-compliant SMSF would attract

According to the main stream media ‘most Australians are wanting the ‘chance’ to invest their retirement funds in capital protected investments that will provide an estimated predetermined income yield at the time of retirement.’

Why invest in your SMSF you are asking? (this is not advice)

1.   AMP in their market analysis found that 70% of people now aged 50 – 69 will earn less than $320 per week at retirement!

a.  Can you and your dependents at the time survive and enjoy retirement on $320 per week?

b. We live to work, we work to live … but at retirement can we afford to live when we can’t or don’t want to work?

2.   Using the 9.25% superannuation grant levy, may only provide a quarter of what you need in retirement.

a.  We just don’t realise how much money we will need to come out on a weekly basis. Not enjoy life, just to come out!

3.   BIS Schrapnel show that the required income for a retired couple, who are debt free, would need to be in the order of $43,000 today

a.  Inflation at 3% will turn today’s value of $43,000 into over $85,000 in just 20 years time

b. Will you have accumulated sufficient capital so that you can retire in the lifestyle you are accustomed to and wish to maintain?

4.   We also know that retirement capital after retirement will probably run out far sooner than you want!

a.  What if it does not run the length of your retirement?  – and we are living longer these days.

5.   Having shared all the ‘cup is half full’ doomsday readily available market information with you, we ask you to realise the fact that :

a.  The government is urging you to put more away towards retirement than we currently do

b. The need to start investing in Super far sooner

c.  And most importantly … people like you are saying they need an element of control and choice of how their own money is invested

i. properT and our professional partners we outsource to provide you with an overall solution to accelerate your Retirement Savings

ii. To become tax efficient now and at retirement

1.  Tax Efficiency at retirement will guarantee you more money in your pocket !!

iii. Forces you to save towards your retirement

iv. You can run your SMSF into perpetuity for your beneficiaries

v.  Minimise capital gains taxes, maximise the outcome

6.   Leveraging with borrowings up to around 70% (some banks will lend 80%) in the purchase of your Investment Property

a. Will allow you to achieve Capital Growth on the full purchase value of the property (not just on the deposit you invest). You may be aware that residential property has doubled in value every 7 – 10 years throughout the last 125 years of record keeping in Australia

  • Meaning if you invest as an example $150,000 into a property valued at $500,000. Any capital growth achieved is off the $500,000! 

Another financial bonus your accountant will share with you is that after holding for 10 years in your SMSF, for which there is not one cent of Capital Gains payable if you sell when you retire.

Summarised : The benefits of having a Self Managed Super Fund (or DIY Super Fund) include :

a.  Ability to reduce income tax on investment income and capital gains during accumulation phase and at retirement

b. Increasing your flexibility of investment choice, asset selection and giving you control of where you want to invest your monies

c.  You manage the risk profile of your investments in conjunction with your financial planners advice

d. Managing the income streams at retirement for you and other members of the SMSF

e. You can transfer personal assets (shares, gold, art, property etc) into your SMSF

f.   Pooling assets of up to 4 members (allowed) into the SMSF will save on costs of managing these funds under seperate Super Funds

g.  Logic tells us that ‘The more tax efficient you are able to retire in, the more money in your pocket for retirement and planned choice of Lifestyle’

 

After all “It is your money!”

Once again, we are not financial planners and any information shared with you on our website is freely available online in the public domain and can be ratified by your financial planner and or accountant who can give you financial planning advice

Comments or questions are welcome.

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