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

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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

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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

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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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How are you tracking with your Retirement Savings?

The purpose of bringing this to your attention is to make you aware of and cognoscente of the fact that something can be done!

There are always solutions; we only need to understand what that solution might look like which best fits your own situation and circumstances.

New analysis based on figures from the ATO on retirement savings demonstrate that men will have around $154,450 and women only $122,850 in their retirement balances between ages 60 – 64. Not much is it?

Sure you may have more, BUT the question is will it be sufficient to give you the life you want and deserve and for how many years will it last when you are unable to continue to save?

Wow, about 18% of 66 year olds are still working and this figure is likely to continue to grow. Meaning a lot of people have not catered sufficiently for their retirement. And 38% of 66 year olds are retired and living totally off their super and other savings. Difficult to estimate what percentage of these people will run out of money during retirement though.

You may qualify for the state pension, but can you really live the way you want to on this low amount?

You may also have a home which is paid for but costing you more than you are comfortable with in rates, upkeep, garden and home maintenance, electricity, water and more. This could be a drain on your retirement savings thus restricting you from doing what you always dreamed of doing in retirement.

There are solutions, you just have to reach out to us

We could go on and put more fear into you, this is not how we best serve our clients we rather focus on solutions. So if the above presents as a concern for you and you want more at retirement then reach out to us so that we may get a better understanding of where you are now, where you want to be and by when. Having this understanding is important to us and you as it will provide us with probable solutions and solutions that could ‘best fit’ your requirements which in turn will add new value to your retirement destiny.

Solutions are varied and may prove to be a mix of strategies from reviewing your family home, your super, savings plans, shares, properties and more.

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How much do I need in Super to start my own SMSF?

How much do I need to set up my own SMSF

and what do I need to know?


  The Royal Commission has ignited a lot of talk in the media surrounding Self Managed Super Funds raising more questions than answers We are not financial planners nor sharing financial planning advice merely quoting sources and or using basic logic in what we are sharing with you   What we do know is that industry funds (generalised) tend to perform at 5% to 7% per annum over the long term + fees, where in your own SMSF you have a wide choice of investment vehicle and can therefore be more hands on with our own Super destiny   NB : It is important to find out what all the fees/costs are being charged to you now wherever your super is being invested. Allows you to compare to what you could be doing and the fees there   There are investment platforms out there where there are no minimums, but before you set up your own SMSF you need to realise that there are some upfront costs for setting up the SMSF and also a SMSF requires annual audits which also cost money   What this means to you and your super is that once you understand the upfront and the ongoing then work out the minimum you would require in super that not only covers your annual audit / accounting fees but also give you returns in excess of average super funds performance   Set up fees could range between $700 and $2,500 depending on complexity and purpose and annual costs for Admin & Audit from around $665 to $1700 for basic SMSF’s and higher for more complex Self-managed funds and some other minor fees Meaning that the lower the balance the higher the cost as a ratio, thus requiring investments to cover costs and return an ROI you are comfortable with   You will have heard a figure of $200k required by ASIC  as a minimum to have your own SMSF, this figure used to be a recommendation and not a legal requirement If you have an amount you are comfortable with knowing you could achieve the financial return on investment you want then having control and choice over your retirement wealth is imperative to enhancing your retirement goals. This is why there as so many SMSF’s registered with Billions of Dollars under Self Manged Super Funds management   You may encounter negativity from your financial advisor and the media (it’s their job) however an advisor is obligated to put your interests ahead of theirs or the conglomerate they represent, your own research and due diligence will allow you to come to an informed decision   Once again : the amount you have in super, the rate of return you are getting versus what your research indicates you could get, less upfront and ongoing fees should help you determine what is the correct strategy and investment vehicle for you and your family   Other aspects for consideration could include : how best to maximise your wealth in retirement planning, what flexibility do you have and want, the varying investment vehicles available to you giving you a wide array of choice and thus control when comparing where the funds are invested now and what choice, control, flexibility, return on investment and ongoing fees   If you are unable to do the comparisons and calculations speak to your financial advisor and or your accountant or ask us for a referral to a reputable professional who can assist you so that you can make your very own informed decision of how you want your monies in Super to be working for you  

Whilst Planning

Did you know that a major advantage of investing in a property within a SMSF is that you are able to Leverage?   What this means to you and other SMSF members is that you can invest only 20% (or more) yet achieve Capital Growth on 100% of the property value + your tenant will help you build wealth by paying rent and depreciation can be deducted against Super contributions further lowering the tax on contributions   The numbers which are underpinning an investment in property could return you around 10% to 17% per annum – *depending on the type of dwelling, rent, interest rates, deposit, capital growth etc, we can help you estimate the cash flow
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Sydney too expensive to Invest in? Where should I invest?

Sydney too expensive to Invest in?

Sydney Return on Investment continues to drop, property values exceptionally high & rental yields exceptionally low as a percentage in most sought after locations in Sydney

Investing in Sydney might not make investment sense to you with rental yields fallen way behind the Capital Growth as Sydney peaks in value?

Are you comfortable investing outside of where you live, if so and you merely view the property purely as an investment vehicle – your strategy would be worthy of including Brisbane, South East Queensland or Melbourne in your portfolio. Most of our online inquiries are coming out of Sydney and for QLD property …

Why?

Better value for your Investment Dollar + capital growth potential + Higher Rental Yields mean you get more for your investment in terms of property + yield and thus return on your Investment dollars working hard for you

 

Did you know :  Brisbane needs to accommodate another 1 Million Residents by the year 2031 requiring 30,000 new dwellings per year !

Ignore the Press : Brisbane on the Cusp of a Once-in-a-Generation growth opportunity on the back of massive Infrastructure Investment, new Job creation and a continued strengthening Population Growth where Vacancies are exceptionally low and Rental Yields very strong  read blog here

 

 

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Industry Super Funds continued Poor Performance and ongoing high fees

Buying property in Super

Why set up your own Self Managed Super Fund?

Industry funds dismal long term (lack of) Performance :

.

Industry Funds results from 1996 to 2010 :

.

  • corporate funds on average provided returns of 5.84% pa
  • industry funds 5.35% pa
  • the public sector funds 6.30% pa
  • and retail funds 3.66% pa

.

And … more than 150 of the growth funds tracked by Morningstar have not earned more than 3.5 per cent a year — or 1 per cent above inflation — over the past decade. These funds contain about $16 billion of workers’ retirement savings.

.

Thirty-three funds have delivered average investment returns of 5 per cent or more for the past 10 years, including some of the biggest funds.


“Ask yourself how does this help you create sufficient retirement income on your super contributions?”


It is widely known that Industry Super Funds attract ongoing annual fees which are further eating into your own retirement value. What most investors don’t consider is that you pay your Fund Managers every year even in years where your fund goes into negative performance. You are paying for this privilege – why??

  • In your industry fund, not only are you achieving dismal long term performance results on your own retirement funds but if you have $125,000 in your current super, ONLY this $125k is working for you!

Wouldn’t you prefer to take advantage of the power of Leverage; whereby you invest say only 20% of the value of the property and have the bank and a tenant fund 80% of the investment meaning you now have an Asset of over $500,000 working for you in your own SMSF and you only invested around $100k for the privilege


Compounding Returns on Investment

Compounding Returns comprise of Interest being earned on top of Interest for the life of the investment; the longer one invests this higher a compounded return will be … we agree

Based on the above returns of 5% pa, $100,00 invested in your Industry Super account would have grown to $1.54m in 15 years (excluding Industry Super annual fees for this exercise) but if the return was 10% per cent pa, the balance would only be $.51m over this same period

What this means to you is that being in control of your own Super Destiny you could be better off by over $900,000 this time in your own pocket!


“This is serious stuff you would agree!”


What if you set up a SMSF (Self Managed Super Fund) and secured a prudent investment property which generated a return on investment of 10% pa; can you imagine the returns on your investment at a regular 10% pa versus industry averages of a dismal 5% pa?!?  Could equate to over a Million $’s over 15 years more in your own pocket


How will a 10% compounded over 10 years or more positively effect your retirement lifestyle. What will this mean to you?


*This is not rocket science nor financial planning advice; merely using Logic and industry statistics

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Residential Property News- Winter Series

PACKED WITH INDUSTRY NEWS, DATA & OPPORTUNITY for You

 Property Focus

properT network

Although we continue to blog and educate you on the investment potential South East Queensland offers … Melbourne (primarily) and Sydney are high on our clients investment agenda (for obvious reasons) and we most certainly provide a lot of property to our clients in these Capital Cities

Property Headlines – ignore or believe?

Industry Research on factual data will clearly tell you Who to believe

So much negativity in the media. If you tell a lie often enough it begins to sound like the truth … experts advise if you are going to invest in property “Ignore the press”. If you are serious, rather look towards factual evidence and you will soon work out that there are opportunities abound to continue to grow and secure some wealth through astute property investment !

Rumours of the death of the Australian housing market are widely exaggerated,” says Craig James, Chief Economist, CommSec. Capital city home prices soared by over 10% with the latest rise of 1.6% in May 2016

Melbourne, Sydney, South East Queensland continue to demonstrate capital growth, low rental vacancies, strong rental yields with high demand.

Note : not all properties or locations are suitable for investment.

House prices continue to grow in most major cities …

… although you wouldn’t know it based on typical coverage in the media

The latest data from CoreLogic May 2016 suggests house prices generally have risen in the past 12 months in Melbourne (up 17.5%), Sydney (up 7.5%), Adelaide (up 3.3%), Hobart (up 4.0%), Brisbane (up 4.9%) and Canberra (up 1.7%)….. an annual rise of 6.6%.

Media paints the figures differently. One News Corp headline claims that “property price growth has ground to a halt”. The Australian says house price growth is “the slowest in three years”…. absolute BS!

read more here

How to choose an Investment Location

Identify and Focus on the Fundamentals underpinning your Investment

Once you have removed the emotion it is a really simple exercise.

Invest where the Government are investing, they want a return on investment
▪ Invest where Industry invest, they are encouraged by government to the location and also want a return on investment
▪ Both Government and Industry Create new Jobs
▪ New Jobs attract Population Growth
▪ Population Growth puts upward pressure on Property Supply
▪ This increased demand increases the value of property
▪ This increased demand places further pressure on supply of Rental Dwellings
▪ Rental Yields increase under the pressure of demand
▪ Capital Growth plus very low vacancy rates and strong rental yields equates to a sound investment

Read more on ‘the perfect storm’ and your investment opportunity here

If you know a town will grow into a City & property values will surely grow. What will you do about it?

Springfield Lakes

No picture can do justice to the Investment potential

Are you aware of what is happening in South East Queensland?

Springfield Lakes (Ipswich) will grow to the size of the Brisbane CBD, on the back of an $80bn investment, a planned population of 138,000 residents and 52,000 new jobs, 2 railway stations, hospitals, schools, a Uni, Industry Head Offices, massive shopping mall and more ! Ouch, what potential and in South East Queensland’s fastest growing region!
more here

Sunshine Coast – both government and industry investment into infrastructure and industry is creating 32,000 new jobs (14k over past 12 months alone) on the back of $7bn dollars investment into infrastructure alone. Largest hospital in southern hemisphere, new university, airport becoming International, new town centers built in Kawana and Maroochydore and more. Population growth is immense with 330k residents growing by around 7,000 people a year needing 3,200 new dwellings pa to meet the rising demand!
more here

Do you know what this means to the value of property in 8, 12, 20 years time = your opportunity now! Can you see the potential?

Towns will become cities and no one can stop this progress, it is happening right now and well into the future. We invite you to undertake your own due diligence and ride the wave to creating some of your own wealth from the blatant opportunity at hand. Ask us how, where or why by clicking here

Melbourne

 Melbourne Investment Property1

Melbourne property continue to demonstrate Capital Growth

Melbourne planned to be Australia’s biggest city by 2050!

On the back of a very strong population growth, high employment, sound economy + historically low interest rates the demand for property in Melbourne continues through Autumn.

Melbourne median house price has broken the $700k barrier for the first time at $713k! Melbourne achieved a massive 17.1% growth for past year ending May 2016 !

Compared to Sydney, Melbourne continues to offer investors value for their investment dollar + sound rental yields. With Herron Todd White predicting Melbourne to overtake Sydney during 2016.

Inner CBD, Southbank, Docklands to be avoided for investment purposes.

Middle ring suburbs and immediate outer ring highly sought after by owner occupiers and tenants alike placing upward pressure on supply.

Suburbs such as Carnegie, Oakleigh, Bentleigh, McKinnon have been touted as fast growth suburbs with sound infrastructure, sought after schools and public transport

Other inner suburbs such as Newport, Maribyrnong, Yarraville and surrounds demonstrate high demand being affordable and close enough to the CBD

Read more on “Why Melbourne” here

properT network | Investor Survey 2016

Your Help Please!!4 minutes of your time to take part in our annual Investors Survey !

Purpose is to understand and manage perception and market trends; the report gathered data will be shared with participants. Submitted anonymously or you choose to include your details. All data for properT’s use only !

Give us 4 minutes of your time, you may be surprised by your own answers – have some fun 🙂 Start answering here

Fact : House Prices continue to grow

Click & Have your say !

Greater Springfield

Greater Springfield

Planned for Greatness

… with 138,000 population and 1 in 3 employed within the new city!
Video Overview to your Investment Opportunity

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