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Advice Warning
This presentation is intended to provide general information
only and has been prepared by Fidelis Financia...
Your Finance Adviser
Credit Representative of Australian
Credit Licence Number 389328
What is a
Self Managed Superfund?
A superannuation fund that is
independently established and run.
The members, as trustee...
The Regulator
SMSF’sare regulated by the
Superannuation Industry (Supervision)
Act 1993 (SIS Act)
Your Own Super?
Why
Manage your own super?
Less
Disadvantages
of Super
More
Advantages
of Super
Advantages
Why manage your own super?
0% tax on retirementii
i
1
Concessional Taxed Income
2
Flexible Investment & Asset s...
Advantages
Why manage your own super?
4
Pool Resources
5
Flexible Pensions
6
Access Centrelink Benefits
Advantages
Why manage your own super?
7
Transfer Owned Shares
8
Own Real Property
9
Time Value
SMSF’s with less than $200,000 in assets will usually incur greater
administration costs.
Increased costs for smaller SMSF...
Corporate, Retail and Industry funds are managed by professional fund
managers who may offer a higher level of investment ...
 Do you have more than $100,000 in combined super?
(this is not a requirement)
 Do you want to control you future and in...
Available Investments
within SMSF
SMSF
Investments
Transaction
Bank Account
Term Deposits
Online Savings
Account
Australia...
Why property?
It is a
Defensive Growth
asset
It tends to provide
strong but
Stable Returns
across all
economic cycles
Pote...
How does it work?
Trustees
The Maze of
Superfund Loan
SMSF makes
repayment to
Bank
Bank
lends
to SMSF
Beneficial
interest
Title deed
held by...
SMSF STRUCTURE
Trustee
Minimum 2
Individual Trustees
All Trustees must
be members and
all members must
be Trustees.
Corpor...
SMSF LOAN STRUCTURE
Key Players
SELF-
MANAGED
SUPERFUND
THE
BORROWER
(SMSF Trustee)
THE SECURITY
CUSTODIAN
TRUSTEE
The Com...
1
.
The SMSF
The Trustees are responsible to
make all the decisions
about how the fund is run, the
investments it holds, a...
2
.
The Borrower
(The SMSF Trustee)
The Self Managed Super Fund
(SMSF)
trustee
(either a non-trading company
or at least 2...
3
.
The Security Custodian
Must be a company who
holds the property
in trust for the Trustees of the SMSF
until the loan i...
Security Custodian
SMSF Home Loan Structure
Security Custodian
Corporate Entity
holds the property
until the
loan is repaid
Directors
purchas...
SMSF
Loan
Process
Decide
if a Corporate or
Individual Trustee
Set up
your SMSF
Loan
Pre-approval
Property
Hunting
Set up C...
Trustees
(You)
The Maze
Resolved
SMSF makes
repayment to
Bank
Bank
lends
to SMSF
Beneficial
interest
Title deed
held by
Ba...
Maximum LVR
64%
66%
68%
70%
72%
74%
76%
78%
80%
Residential Commercial
80%
70%
Serviceability Ratio
Servicing
(Common Examples)
1.25x1.1x
Serviced ApartmentStandard Residential Property
How is
Serviceability Calculated?
i) Debt Service Ratio – (‘DSR’)
This is the ratio of your loan repayments to your gross
...
Rental Income
Contributions
Investment Earnings
Acceptable income sources
are (most lenders assess at
80% of
total income ...
PAYG Contributions 9.25% SGC (Concessional)
Superfund Loan
Servicing Income
Rental Income (if serviced apartment assessed ...
Types of Super Contribution
CONCESSIONAL
NON-
CONCESSIONAL
2
1
Concessional contributions include:
• Employer contributions (including contributions made under a salary sacrifice arrang...
Concessional Contribution - Limits
• $35,000 per member per annum
(unindexed)
Aged
60 and over
• $25,000 per member per an...
Income
Tax%
Non-Concessional
Contributions that
Income Tax
has been paid
(more popularly known as
after-tax contributions)
Non-Concessional Contribution -
Limits
•$150,000 per annum per person; or
• Members may bring forward a
maximum of $450,00...
Non Recourse Loan
The structure used is an approved Non-Recourse Structure that limits
the banks recourse to the property ...
Banks will require a personal guarantee in all cases apart from when they
are using the SGC 9.25% for PAYG employees toget...
• Refinance of existing SMSF Loan
from any external institution
• Loans secured by a first mortgage
only
Available
Finance...
Owner occupied
residential property
Specialised security
e.g. Retirement Village units or
holdings
Company &
Stratum title...
Properties on land
exceeding 2.5
hectares
Property
development &
Construction Loans
(under LRBA)
Properties located in
Non...
Some of Our Lenders
More than 25
banks to
choose from
Fidelis App
Download Today
All of the property
tools and resources at
your fingertips.
Get loan pre-
approval, ask for
pro...
Earn $200
for every new home loan client
you refer to us!
Make your FREE appointment today
Credit Representative of Australian
Credit Licence Number 389328
1300 764 247
finance@fidelisfinancial.com.au
www.fidelisfinancial.com.au
Self managed superfund home loan
Self managed superfund home loan
Self managed superfund home loan
Self managed superfund home loan
Self managed superfund home loan
Self managed superfund home loan
Self managed superfund home loan
Self managed superfund home loan
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Self managed superfund home loan

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Transcript of "Self managed superfund home loan"

  1. 1. Advice Warning This presentation is intended to provide general information only and has been prepared by Fidelis Financial Solutions ABN 22 154 372 979 without taking into account any particular person's objectives, financial situation or needs. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain financial advice specific to their situation before making any financial investment or insurance decision. Please note all case studies on this site are for illustration only.
  2. 2. Your Finance Adviser Credit Representative of Australian Credit Licence Number 389328
  3. 3. What is a Self Managed Superfund? A superannuation fund that is independently established and run. The members, as trustees, make all the decisions about how the fund is run, the investments it holds, and the type of benefits it can pay. Legal responsibility for running the fund and complying with legal requirements falls on the individual as trustee.
  4. 4. The Regulator SMSF’sare regulated by the Superannuation Industry (Supervision) Act 1993 (SIS Act)
  5. 5. Your Own Super?
  6. 6. Why Manage your own super? Less Disadvantages of Super More Advantages of Super
  7. 7. Advantages Why manage your own super? 0% tax on retirementii i 1 Concessional Taxed Income 2 Flexible Investment & Asset selection 3 Controlled Investment
  8. 8. Advantages Why manage your own super? 4 Pool Resources 5 Flexible Pensions 6 Access Centrelink Benefits
  9. 9. Advantages Why manage your own super? 7 Transfer Owned Shares 8 Own Real Property 9 Time Value
  10. 10. SMSF’s with less than $200,000 in assets will usually incur greater administration costs. Increased costs for smaller SMSF funds As you will be either the trustee of the fund or a director of a corporate trustee of the fund, you are responsible for the administration, investment and ongoing compliance of the fund. Any breaches of government regulations may result in your fund’s assets and income being penalised at the top marginal tax rate. In extreme breaches, trustees may also incur fines or jail terms. A SMSF has some initial set up costs that a fund does not. This can vary depending on the complexity, purpose, flexibility and assets you intend to hold within the fund. 1 2 Disadvantages Reasons for not managing your own super Set up Costs Responsibility 3
  11. 11. Corporate, Retail and Industry funds are managed by professional fund managers who may offer a higher level of investment experience and expertise. 4 Investment expertise Ongoing Management and administration of the fund’s investments can be time consuming.5 Time Disadvantages Reasons for not managing your own super
  12. 12.  Do you have more than $100,000 in combined super? (this is not a requirement)  Do you want to control you future and investments?  Do you need flexibility with investments and the ability to take control of your whole portfolio?  Are you ok with the extra responsibility?  Are you a high net worth individual or do you own your own business?  Will the benefits outweigh the costs?  Do you want to start controlling your retirement today? Is an SMSF Right for You?
  13. 13. Available Investments within SMSF SMSF Investments Transaction Bank Account Term Deposits Online Savings Account Australian Shares (CHESS Sponsored) International Shares CFDs, Options and Warrants Forex, Futures and Metals Residential Domestic or Overseas Property (with or without borrowing) Commercial Australian Property (with or without borrowing) Australian and International Managed Funds Bonds and IPOs Others…
  14. 14. Why property? It is a Defensive Growth asset It tends to provide strong but Stable Returns across all economic cycles Potential of Strong Capital growth Provides Diversification to your Portfolio as property is unrelated to other investment classes you might have As a result, it provides the ability to Smooth out the Volatility & Returns of your wider portfolio Current historically Low Vacancy Rates Australia wide
  15. 15. How does it work?
  16. 16. Trustees The Maze of Superfund Loan SMSF makes repayment to Bank Bank lends to SMSF Beneficial interest Title deed held by Bank o Rent paid directly to SMSF o Property expenses paid by SMSF Limited recourse to secured property Sells property to legal owner
  17. 17. SMSF STRUCTURE Trustee Minimum 2 Individual Trustees All Trustees must be members and all members must be Trustees. Corporate Trustee The directors of a Corporate Trustee must also be the members and all members must be the Directors. Single Member Funds Generally will be a Corporate Trustee but in some cases will have 2 persons as Trustees with the second person either being related to the other or any other person who does not employ them.
  18. 18. SMSF LOAN STRUCTURE Key Players SELF- MANAGED SUPERFUND THE BORROWER (SMSF Trustee) THE SECURITY CUSTODIAN TRUSTEE The Company PTY LTD created to hold the property 32 1
  19. 19. 1 . The SMSF The Trustees are responsible to make all the decisions about how the fund is run, the investments it holds, and the type of benefits it can pay. The members have the legal responsibility for running the fund and complying with legal requirements
  20. 20. 2 . The Borrower (The SMSF Trustee) The Self Managed Super Fund (SMSF) trustee (either a non-trading company or at least 2 individuals)
  21. 21. 3 . The Security Custodian Must be a company who holds the property in trust for the Trustees of the SMSF until the loan is repaid in full.
  22. 22. Security Custodian
  23. 23. SMSF Home Loan Structure Security Custodian Corporate Entity holds the property until the loan is repaid Directors purchaser Guarantor / Mortgagor
  24. 24. SMSF Loan Process Decide if a Corporate or Individual Trustee Set up your SMSF Loan Pre-approval Property Hunting Set up Custodian Trust before signing the purchase contract
  25. 25. Trustees (You) The Maze Resolved SMSF makes repayment to Bank Bank lends to SMSF Beneficial interest Title deed held by Bank o Rent paid directly to SMSF o Property expenses paid by SMSF Limited recourse to secured property Sells property to legal owner
  26. 26. Maximum LVR 64% 66% 68% 70% 72% 74% 76% 78% 80% Residential Commercial 80% 70%
  27. 27. Serviceability Ratio Servicing (Common Examples) 1.25x1.1x Serviced ApartmentStandard Residential Property
  28. 28. How is Serviceability Calculated? i) Debt Service Ratio – (‘DSR’) This is the ratio of your loan repayments to your gross income Loan Repayments/Gross Income For most lenders this figure should not exceed 30% for singles and 40% for couples i) Net Debt to Income Ratio – (‘NDI’) This is the ratio of your net disposable income to total debt commitments Net Disposable Income/Total Debt Commitment
  29. 29. Rental Income Contributions Investment Earnings Acceptable income sources are (most lenders assess at 80% of total income received) including: Superfund Loan Servicing
  30. 30. PAYG Contributions 9.25% SGC (Concessional) Superfund Loan Servicing Income Rental Income (if serviced apartment assessed at 60%) Additional Contributions to Super from PAYG Salary (Salary Sacrifice Concessional) Self Employed Actual / Proposed Contributions (Concessional) Non-Concessional Contributions Super Fund Investment Earnings (from existing rent and or calculated income from surplus shares and cash after settlement) 3 1 2 4 5 6
  31. 31. Types of Super Contribution CONCESSIONAL NON- CONCESSIONAL 2 1
  32. 32. Concessional contributions include: • Employer contributions (including contributions made under a salary sacrifice arrangement) • Personal contributions claimed as a tax deduction by a self-employed person. Contributions that are Tax Deductible to the member from either PAYG or from Profit on Business PAYG / Profit Tax% Concessional Contribution
  33. 33. Concessional Contribution - Limits • $35,000 per member per annum (unindexed) Aged 60 and over • $25,000 per member per annum (indexed) Aged under 60
  34. 34. Income Tax% Non-Concessional Contributions that Income Tax has been paid (more popularly known as after-tax contributions)
  35. 35. Non-Concessional Contribution - Limits •$150,000 per annum per person; or • Members may bring forward a maximum of $450,000 in any 3 years period. Aged under 65 If you’re under the age of 65, you can bring forward up to three years’ worth of non-concessional contributions, which means you can make up to $450,000 in super contributions in one year, representing your non- concessional (after-tax) cap over a three-year period. Please consult your financial planner before making any super contributions.
  36. 36. Non Recourse Loan The structure used is an approved Non-Recourse Structure that limits the banks recourse to the property being purchased and personal guarantees if required. The bank has no right of recourse over any other asset contained within the SMSF structure. However, if the loan is approved subject to Personal Guarantees from the members then the bank will have right to seek recourse from the members personal assets. 3 1 2
  37. 37. Banks will require a personal guarantee in all cases apart from when they are using the SGC 9.25% for PAYG employees together with confirmed rental from the proposed purchase. Hence if any income, such as Non-Concessional contributions / Salary Sacrifice contributions / Investment Income / existing Rent etc. , is used then Personal Guarantees will be required. Additional contributions are made to above the SGC level (currently 9.25%) and the rental from the property being purchased to service the loan. Members are self employed There is a Corporate Trustee – the Directors guarantees are required. 1 2 i ii iii Personal Guarantees Examples of when Guarantees will be required:3
  38. 38. • Refinance of existing SMSF Loan from any external institution • Loans secured by a first mortgage only Available Finances for:
  39. 39. Owner occupied residential property Specialised security e.g. Retirement Village units or holdings Company & Stratum title Vacant Land Any asset not acquired with the Loan proceeds Second Mortgage or subsequent mortgages
  40. 40. Properties on land exceeding 2.5 hectares Property development & Construction Loans (under LRBA) Properties located in Non-Prime Lending Area or Broken Hill (NSW) Off the Plan Purchases, unless occupation Certificate or equivalent has been issued and the title and or Strata has been registered. Cash Deposits Non Residential, industrial or commercial properties
  41. 41. Some of Our Lenders More than 25 banks to choose from
  42. 42. Fidelis App Download Today All of the property tools and resources at your fingertips. Get loan pre- approval, ask for property valuations, access our professional network and much more! Available from Google Play and Apple Store
  43. 43. Earn $200 for every new home loan client you refer to us!
  44. 44. Make your FREE appointment today Credit Representative of Australian Credit Licence Number 389328
  45. 45. 1300 764 247 finance@fidelisfinancial.com.au www.fidelisfinancial.com.au
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