Do you want another Million $’s in your super when you retire?

Excellent NewsSingle Contract new builds suited to SMSF Investment now available Australia wide!

It is easy to retire with an extra $million dollars in your super when you understand how

But the real question is “Do you really want another *$million in super when you retire?

We know, never in the history of Australia, have we experienced what is going on in the residential property market, such as what is happening right now, where there are more buyers than property being driven by FOMO, low interest rates, low supply, government incentives for first home buyers etc. Some are calling it the ‘perfect storm’ for obvious reasons.

This is driving capital growth and strengthening rental yields, which is “your investment opportunity” and also an incredible opportunity for a Self Managed Super Fund wanting sound yields and capital growth potential … you’d have to agree!

The issue has been trying to access what the industry classifies as “Investment Grade Property”, which is also well suited to a SMSF!

What we mean by this is that, in general, only a small percentage of residential property is viably suited to being an astute investment. In Super, with less deductions and the requirement for higher yields, even fewer properties actually tick the boxes you would want … if you only knew what you didn’t know that you knew.

Solution

What we have found over the years, especially based on the budgets of $550k to $850k, is a new build home attracts and is better underpinned with improved numbers on your investment, when compared to an older secondhand property, for numerous reasons we can share with you when we catch up. Having access to a new property dramatically widens your choice to a lot more investment grade property, better suited to a SMSF.

Another advantage is your ability to put down a 20% deposit and use the power of Leverage (the banks money) to further fund and drive your investment. Meaning your SMSF has only invested 20%, yet the fund is achieving capital growth on 100% of the asset.

Add to that Rental Income paid to your SMSF, and the magic of Compounding Growth, plus some deductions which reduces the 15% tax rate on your contributions … all adding up to further drive and underpin your investment into Investment Grade residential property in your Self Managed Super Fund.

Currently, where there are borrowings, to leverage into your investment, law does not allow one to improve on the asset. Meaning a two-part contract (house and land) is not allowed and so some builders built under single contract, included holding costs, and thus charged you around 20k to 30k for the privilege.

Today

What is available to you today, is a solution where a professional firm steps in between you and the developer, this firm arranges everything on your behalf with the developer and provides you with a Single Contract to suit SMSF requirements.

How good is that!

What this also means to you is now we have incredible choice, and not the limited choice we had prior to this new ‘one part contract’ service. Improved choice can equate to improved investment returns you would agree.

SMSF Loan

Further to this, the company will offer your SMSF, the ability to borrow the balance of the amount you need after your initial deposit and at a rate lower than the banks.

Banks incidentally have become less inclined to lend to super and make you jump through crazy hoops to get this funding. Banks traditionally have undervalued single contract homes in Super, meaning a larger deposit required out of your SMSF’s pocket at your own expense. Banks also insist on overpriced, expensive Statements of Advice you have to hire a Financial Planner to give you!

How is this group different : This group will treat your application primarily as a low doc loan, valuations will also stack up and the whole system makes it that much easier to be able to secure an Investment Grade residential property to suit your SMSF requirements and preferred investment strategy; and no pesky overpriced Statement of Advice needed.

Types of dwellings suited

Some Housing Solution Products which would traditionally be a two part contract they will accept include :

  • Stand alone homes – yields around 4.5% to 5%
  • Dual Key or Duplex – homes yields around 5.5% to 6%
  • SDA Property otherwise called NDIS Property – yields around 12% to 18%
  • Co-Living homes – yields around 8% to 9%

Not sure if you are aware of NDIS Property (purpose build houses to accommodate people with disability) which are able to generate yields of 12% to 18% or a co-living home with yields around 8%?  Ask us if you are uncertain.

You now have improved choice

The purpose of our blog today is to expose you to the opportunity of giving your SMSF incredible choice, the ability to borrow and have your investment valued appropriately so your SMSF is not out of pocket, matching the location to your budget etc. All combined equates to you and your SMSF and beneficiaries all having a lot more $’s in your pocket at retirement.

Where to from here?

If securing Investment Grade property in your SMSF and having more $’s available to you at retirement and after retirement is a priority you want to solve, where do you feel we should go from here?

Now that you have been made aware and knowing you now have a vastly improved choice of investment grade properties and the ability to secure a SMSF loan and have your SMSF investment valuation stack up and not be unrealistically undervalued by a bank looking after their own interest rather than yours … what will you be doing differently to permanently alter the course of your super’s end value by taking deliberate control of it?

As you know, I am passionate about property, I love helping my clients make informed astute investment decisions and I value questions. Assuring you of my prompt, personal and professional attention now and into the future.

Want to make a difference, then click here to ask your questions or request more info on Single Contract properties and or SMSF loans or pick up your mobile now and phone me on 0412 108 125 to discuss.

Read more here

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!”

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.

Wordpress Social Share Plugin powered by Ultimatelysocial
error

Enjoy this blog? Please spread the word :)

YouTube
YouTube
LinkedIn
LinkedIn
Share