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Message Building for your retirement!superannuationsmartproperty.com.au1300 40 10 40B U I L D N E W H O M E SI N S I D E S U P E R
WELCOMEInvesting in property in Australia has always been considered a very solidinvestment option, but doing so through superannuation has had its limitations inthe past, especially where borrowings are involved. Investors were limited tosingle part contract purchases like apartments, townhouses or existing propertysold as a ‘single part contract’ purchase. Fortunately there is now a solution. Superannuation Smart Property works with industry professionals to open upproperty investment opportunities like never before. We understand theattraction to build brand new property as part of your investment portfolio, andwe can now assist you in building new house and land with ease and confidenceinside what many consider to be the best tax vehicle we have in Australia: yourSelf Managed Super Fund (SMSF). Superannuation Smart Property works with you to find the right propertyinvestment to suit your budget and financial goals. Not only do we love what wedo but we are also growing our own SMSF portfolios by investing in new houseand land builds, so we have first hand experience in this area, and are happy toshare this knowledge with you. And the best part: It costs no more to use ourservice. DISCLAIMER: Information provided is for general information only. SuperannuationSmart Property and any of its affiliates do not provide financial advice and encourageyou to seek advice from a licensed financial planner who is authorised to advise onpurchasing real property as part of an investment plan prior to making anyinvestment decision.
BUILD NEWTraditionally investing in property through SMSF’s wascomplicated by restrictions on two part contracts, whereborrowings are attached to the property purchase, whichincluded new house and land builds. We now have a thirdparty solution that meets the rules of the SIS Act (governingSMSF investments) to ensure your new property builds arefully compliant. Working with Superannuation Smart Property provides youaccess to the full array of build types, working with yourpreferred builders, giving you full choice like never before. Found a property yourself that you’d like to build insidesuper? No problem. We can facilitate that for you too. Y O U C A N N O W B U I L DN E W H O U S E & L A N DI N S I D E Y O U R S M S FWhat will your retirement look like?
WHY THE HYPE?When considering investing in property, everyone has heard the mantra‘location, location, location’. And of course the physical location of theproperty is very important. But there is another ‘location’ you need to giveserious consideration to, and that is under which entity you purchase yourinvestment property. Although we cannot give financial advice and do strongly recommend youdiscuss your own personal financial situation with a qualified financialadvisor, we can give you an overview on a few of the different entities underwhich you can purchase your investment property. Choosing the right entitycan make a massive difference to the financial outcome and your plans togrow wealth for retirement. The below scenario will demonstrate 3 different outcomes on the sameproperty and the tax paid on each of these. Capital gains tax is also something to greatly consider when making a planfor your long term investment: paying capital gains when you sell outside ofsuper on whatever tax rate you are on at the time of selling, or ZERO capitalgains tax if sold inside super when fully retired. W H A T A R E T H E B E N E F I T SHow much tax will you pay?
PROPERTY OPTIONSThe choices are yours:Choose what you buildChoose where you buildChoose which builder to build withOr choose a fractional share in a high yield property as ‘tenants incommon’NDISDUAL KEYCO-LIVINGHOUSE & LANDDUPLEXTENANTS INCOMMONI T ’ S A L L A B O U T C H O I C EWhat property type best suits your needs?
ROOMING HOUSENormally a Class 1B build that looks like a normal housefrom the outside, but contains anything from 5 - 9 individualsuites on the one title (depending on the state). Why rooming houses make an attractive investment option:Each suite has a private bedroom and bathroom, andsome also contain individual kitchenettes & living areas,making them a very attractive option for single peoplelooking for a room to rent with their own private space.Individual lease per suite makes this a great option forthe investor - if one tenants moves out, there is only aloss of 1/5 (or 1/9) of the rental income for a shortperiod until the room is re-let, rather than losing rentalincome on the entire property. Rental income per ‘suite’: est $400 - $500+ per week.Rents with power, water & NBN included, plus fullyfurnished - again very attractive for the tenant as theyknow their exact costs week to week and can accuratelybudget.Class 1B build - mostly city suburb locations that providefor great capital growth opportunities. High demand, great income. Check outwww.flatmates.com.au in the area and you will easily seethe demand for room rental accomodation.W H A T I S A R O O M I N GH O U S E ?Executive build
ROOMING HOUSELow setF L O O R P L A N E X A M P L E SHot demand!High setExecutive buildStandard buildWe work with a variety of rooming house buildersproviding different styles, presentations and floor plans in many states of Australia. The maximum number of rooms varies from state to state, as does the ‘suite’ inclusions. Please chat with us about the options available to you.
FRACTIONAL Fractionalised property investing in Tenants In Common Propertyprovides an affordable property investment option on high yieldproperties. From as little as $60,000 you can join forces with other like-minded investors enabling fractional ownership without the need topurchase an entire property. With your name on the title as ‘tenants incommon’ you are exposed to capital growth as well as achieving returnsup to 11% per annum. Name on the title as ‘tenants in common’ Purchase in 5% share lotsPurchase shares as funds allow to grow your portfolioSell your share at any timeHigh returns - projected returns up to 11% per annumSpread risk over multiple propertiesOpen to investors of all levelsPurchase inside or outside superUp to 8 owners on each propertyNo borrowings required - cash only purchaseExposure to capital growthT E N A N T S I N C O M M O NSuper smart investing
FAQ’SC O M M O N Q U E S T I O N SQ. I don’t know anything about setting up a SMSF, can you help?A. We can put you in touch with professionals who can assist you with both thesetup as well as ongoing management if you wish. Q. What types of properties can I buy inside my SMSF?A. We can now help you access standalone properties like dual keys, duplexes,rooming houses, NDIS and standard house and land builds, as well asapartments, townhouses and existing property. Q. Does purchasing the same property as a single part contract inside mySMSF cost more?A. Yes, there are additional costs to provide this service which are packagedinto the single part price, and we can explain this to you. However these costsare generally considered to be greatly outweighed by the benefits of investinginside a SMSF, such as tax advantages and capital gains tax benefits. Yourfinancial advisor can provide full information on the benefits. Q. How much money do I need to invest in property inside my SMSF?A. This will depend on the type of property. For some, a 20% deposit isenough (potentially min $140K+), but for other property types a 30-35%deposit is needed. You may also wish to consider a fractionalized investmentwhere you can invest with as little as $60,000 for a 5% share of a high yieldproperty. What is your investment strategy?
FAQ’S C O M M O N Q U E S T I O N SQ. What is the difference between a two part contract and a single partcontract, and why do I need a single part contract? A. Every new residential house and land build starts off as a 2 part contract: onecontract for the purchase of the land and a separate contract to build the house.This isn’t allowed directly into a SMSF if there are borrowings attached to do this.The SIS Act – Superannuation Industry (Supervision) Act 1993 – instructs that anyresidential property purchase inside a SMSF, if there are borrowings attached,needs to be done as a single part contract purchase. Q. Can you provide me with financial advice on whether this is a suitableinvestment strategy for me and my SMSF? A. Unfortunately not. We can certainly assist you with finding a great propertythat meets your price range and works with the deposit you have, however we arenot financial advisors and cannot advise if this is suitable for your own personalneeds. We strongly recommend you have this conversation first with your ownfinancial advisor, or can certainly recommend a few that we know our clients havehad a great experience working with. We do not receive referral fees. Q. What are NDIS properties? A. NDIS properties are properties that have been built to comply with NDISstandards. The NDIS is the National Disability Insurance Scheme, an AustralianGovernment organisation that provides funding for people with disabilities to beable to live in NDIS certified accommodation. The NDIS provides financial supportfor accommodation which can be attractive to the investor, although theproperties, being built to NDIS requirements, can be more expensive to build thana general home. Within the NDIS there are 4 levels: High Physical Support, FullyAccessible, Improved Livability and Robust. NDIS houses are often built to caterfor one or more of these categories.
WORKING WITH USSuperannuation Smart Property is a fully licensed realestate agency working as a buyers agent predominantly forthe SMSF investor. We have access to thousands of ‘off market’ new houseand land builds, as well as newly completed new builds,as well as apartments and townhouses, all sold as singlepart contracts. There is no extra cost to use our service - we do notcharge a buyers agent fee and are simply remunerated bythe builder, similar to a real estate agent, on each sale.This means that the price is the same for the purchaser. We will work with you to find the right property for youbased on your deposit. Our aim is to source the highestyield property for you and present only the bestproperties that meet your investment strategy. The SMSF investor space is a niche market and weunderstand the requirements of the SMSF investor. Wecan, however, also assist for any purchases outside ofsuper for the owner occupier or general investor.Book in a time to meet with us online and let’s chat about property options that best suit your needs. H O W W E C A N H E L P
What are my long term financial goals?1.What types of properties align with my investment strategy?2.What is my timeline for seeing returns on my investments?3.Am I comfortable with fractional ownership?4.What support do I need to achieve my investment goals?5.Let’s have a no obligation chat to discuss yourproperty options. Feel free to scan or click on the QR code to book ina time that works best for you, or reach out directlyif only after hours works and I’ll open up a spotespecially for you. ASK YOURSELFLET’S CHATDISCLAIMER: Information provided is for general information only. Superannuation SmartProperty and any of its affiliates do not provide financial advice and encourage you to seek advicefrom a licensed financial planner who is authorised to advise on purchasing real property as partof an investment plan prior to making any investment decision. 1300 40 10 40 or 0407 477301P.O. Box 5909, Maroochydore Qld 4558info@superannuationsmartproperty.com.auwww.superannuationsmartproperty.com.auCONTACTLisa Thomas SMSF Property SpecialistWANT TO LEARN MORE?Watch our webinar recording on demandby clicking this link: WEBINAR RECORDINGor visit: www.webinar.superannuationsmartproperty.com.au