SUPERANNUATION

Australians feel more comfortable with Property?

With many Australians feeling more comfortable investing in property than shares (equities), this has given many clients a greater peace of mind knowing that their superannuation assets are invested in property. This is why we are seeing a growth in clients using their superannuation assets so they can buy an investment property.

SMSF lending makes its more Achievable

With  SMSF property lending available, this makes buying an investment property using your super money even more achievable.

  • SMSF Property lending allows you to borrow up to 80% of the funds (subject to eligibility requirements) for residential properties.

  • SMSF Property lending allows you to borrow up to 60% of the funds (subject to eligibility requirements) for commercial properties.

How we can Help you

SMSF Property is an effective long-term wealth creation strategy and we have highlighted some of the key areas we assist with clients;

  • SMSF Property requires you to establish a Self Managed Super Fund and a Bare Trust (otherwise known as a Custodian Trust).

  • You are allowed to have up to 4 members in your SMSF.

  • Once the SMSF has been established, we assist with the implementation and rollover of your existing superannuation funds into your new SMSF structure.

  • Obtain pre-approval finance for your SMSF property investment so you have finance in place before you purchase an investment property or a commercial property.

  • Implementation of life insurances to ensure your SMSF property assets are protected and are not forced to be liquidated should one of the members pass away.

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  • SMSF’s are the fastest growing sector in the $1.4trillion superannuation industry, accounting for 31.1% of the superannuation market.

    The popularity and growth in the SMSF’s sector is highly driven by the level of flexibility it provides and in particular, the range of investment options compared to industry and retail superannuation funds.

    SMSF Full Package Service

    We provide high net worth individuals across the Mornington Peninsula a full tailored SMSF advice package to establish and maintain the regulatory requirements from a financial advising perspective and also the accounting requirements.

    SMSF does not require you to manage your own investments. This tailored SMSF package is managed by a qualified financial adviser in conjunction with an accountant to ensure you meet all the necessary ATO requirements and guidelines.

    SMSF Benefits and Features

  • A SMSF allows you to have 4 members in the one superannuation structure. It is extremely common for both husband and wife to consolidate their super assets under the SMSF structure compared to having two separate superannuation plans.

  • You have greater access to a range of investment options compared to industry and retail super funds. These include:

    • Cash Management Accounts

    • Term Deposits

    • Direct Australian Equities

    • Direct International Equities

    • Index Traded Funds

    • Foreign Exchange

    • Residential Property (Australian)

    • Residential Property (overseas such as US)

    • Commercial Property to lease back to your business

    • Alternative Assets such as Gold & Silver Bullion or Arts.

  • Greater transparency and understanding of where your super assets are invested.

  • Flexibility to convert superannuation from accumulation to pension for any member.

  • Consolidation of administration and adviser fee charges as fees are charged to the one entity, being the SMSF.

 

 

Buying an investment property has been a successful wealth creation strategy for many Australians.

Super won’t be enough? Why property investing is the key

Buying an investment property should be considered, along with your superannuation and other investments as part of your overall wealth creations to fund your future retirement.

The first exposure to property in most cases will be the purchase of your first home. We have all witnessed over time the capital growth in our homes due to economic factors such as increasing home buyer demand, lower interest and increased foreign investment.

In most cases your superannuation will not be enough to fund your retirement, so buying an investment property should be considered as part of your wealth creation strategy. This is where we advise clients on how they can access equity in their home along with a cash flow analysis so they can buy an investment property.

Benefits of Property Investment

Buying an investment property provides many benefits as part of your wealth creation strategy. This is explained below;

  • Most investors feel comfortable with buying an investment property versus shares as it is a tangible asset, an asset they can see.

  • Historic growth in residential property over the decades has assisted many clients to build wealth through property investing (including their home).

  • With the increase in capital growth on residential properties, this is also reflected in increasing rental yields so properties over time can move from a negatively geared investment, to neutrally geared and long-term to a positively cash flow investment.

  • Buying an investment property is traditionally great for tax planning but the structure and asset ownership is integral to capture these tax benefits.

  • Buying new properties over established properties also provides greater tax advantages due to the depreciation that you are allowed to claim on the ‘building price’ each year.

  • Buying your first investment property today is much more achievable due to the current low interest rates on investment loans.

  • Tax variation forms also assist with the ongoing cash flow management of owning an investment property.

Building Wealth & Saving Tax

  • Buying an Investment Property is a great way to build long term wealth.

  • A $450,000 Investment Property in 10 years time could potentially be worth $700,000 – $900,000 based on historic calculations.

  • The interest you pay on the investment loans are ‘tax deductible’ which means you will receive a greater tax refund every year.

  • Property Investing should be considered as part of your overall future retirement plans.

How we can HELP you

We can assist you with the following:

  • Advice on your current Equity Position.

  • Eligibility requirements for an Investment Loan.

  • Cash Flow and Tax Considerations on a potential Investment Property purchase.

  • Advice on the correct loan structures for your Investment Property.

  • Get you in financial position so you are ready to buy.

Contact Us

If you would like to find out how you can buy an investment property, please complete our online enquiry form below or simply contact our office to book your free 1 hour appointment.

Complimentary First Consultation

Your opportunity to speak with us about beginning your financial journey.

HUB Financial identifies Risk management as an essential part of protecting your families future and provide peace of mind. By preparing families for future uncertainties and protecting their lifestyle and income. We all insure our house and our cars, but have we insured the most important things, ourselves and our lifestyle? Read More

Related Product of Interest

Want more control of your superannuation than a Self manages Superannuation (SMSF) could be right for you. You can even buy an investment property or direct shares with your superannuation. Read More

Thinking about investing? Speak with the Hub Financial team to help point you in the right direction. With so many different options such as property, managed funds and  shares. We will help you choose an investment appropriate to your goals and objectives. Read More

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Hub Private Wealth Pty Ltd trading as Hub Financial Advice is a Corporate Authorised Representative of Affinia Financial Advisers Ltd ABN 13 085 335 397 AFSL No. 237857

Office Location
1/86 Shore st West 
Cleveland Qld 4163

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