Smsf presentation print colors and disclaimer 2014
CAN YOU ACHIEVE FINANCIAL FREEDOM ?
Seek employment services research indicates that 83% of people hate their jobs! Yet so many still are
following the 19th century formula of working hard in a job for 40 to 50 years of their life so they can retire at
age 65 years old to the good life? 96% of the population will be following this personal wealth creation
formula and will find themselves working an average 40+ hours a week for their wage. Have you ever
wondered in the 21st Century how that formula is working for people?
The following facts exist for every 100 people that reach 65 years of age
25 Will be dead;
20 Will have annual incomes under $10,000;
51 Will have annual incomes between $10,000 to $35,000;
4 Will have incomes over $35,000;
1 Will be a Millionaire.
Have you ever wondered why there are some people who start with nothing and manage to become
millionaires, while others, who seem much more intelligent, often with a higher education, yet in terms of
financial success fail, their lives are filled with hard work and struggle!
Trusts – with a personal or company trustee –
Lenders have different requirements in this area.
Self Managed Superannuation Fund (SMSF),
purchase outright or borrow via Self Managed
Pre Approval Process – With SMSF we recommend
applying for a pre-approval with an appropriate
lender before going to the expense of setting up a
fund. We can do that for you at no cost or obligation.
Once you have your pre-approval, you need to have a Self Managed
Superannuation Fund established in place before you purchase a property.
Your SMSF appoints a Property Trustee to purchase the investment
property on its behalf, as security for the loan. The Property Trustee must also
be in existence prior to any property being purchased.
The SMSF contributes cash to pay the deposit on the property and to meet legal
and stamp duty.
The SMSF then manages the property in the same way as any other
real estate investment.
The property is held in trust and the legal title is either transferred to the
SMSF when the loan has been repaid or the property has been sold.
Contribution required to purchase a
Superannuation Fund with a company as Trustee.
Purchase Property $450,000-00
Government Fees $ 20,000-00
Loan Amount @80% $470,000-00
Equity from Superannuation Fund required $140,000-00
Superannuation Fund with individuals as Trustees.
Purchase Property $450,000-00
Government Fees $ 20,000-00
$470,000-00 Loan Amount @72% $338,000.00
Equity from Superannuation Fund Required $132,000.00
Use current superannuation assets as equity to fund the
Use Superannuation Contributions to fund repayments.
Rental can be used to repay principal.
15% tax on earnings and 10% on Capital Gains before
By using negative gearing within super, the tax rate on the
earnings can be brought down as low as 0%.
No tax payable on income or Capital Gains on disposal in
Pension mode over the age of 60.
Banks will lend to 72% if the fund has individual trustees or 80% if the fund has a company as trustee. A client can have
individual trustees of a fund or have a company as trustee of which they are the directors. The bank fees are deductible to the
fund and are claimable over 5 years.
Using Standard Bank Superannuation Loan Product.
3 Year 5.64%
Stantins Finance Broking Pty Ltd ABN 35 216 563 698
Rates quoted are for comparison/discussion purposes, they are typically what are available from our current lender panel.
They are subject to change without notice. Stantins Finance Broking Pty Ltd Australian Credit Licence Number 390744 will
provide a comparison rate schedule specific to your personal circumstances. Rates are current as at the 16th June 2014
SMSF VARIABLE RATES
Attractive Rates @
The procedure and time frame is usually as follows:
Obtain a loan preapproval . We can do this for you at no cost or obligation. It is as simple
as completing one of our assets and liabilities forms.
You are then in a position to determine if you can purchase a property and whether it is
worthwhile establishing a fund.
The fund and structure is setup. The ABN and TFN will issue within 14 days from the
ATO. Once these have issued, a bank account for the fund can be opened.
Also, once the ABN is received, you can then request a rollover of super from your existing
superannuation fund into their self managed fund. Some funds can take 4 – 6 weeks to
release the rollover cheque.
The deposit can be paid by the fund at any time once the fund and borrowing structure has
been established. Any deposit on the property can be reimbursed once your rollover funds
have been received.
It is advisable to make the deposit subject to finance. Even though your SMSF may be pre
approved for finance, if there is an issue with valuation or you have not provided full
disclosure in the initial pre approval, then finance could still fall through.
The fund and borrowing structure must be in existence at the time the contract is signed and
the deposit is paid.
Take out or replace your existing
insurance with cover paid for by
•Total and Permanent Disablement
Insurance (Any Occupation)
•Income Protection Insurance*
•Basic cover within an SMSF can be combined with cover owned by an individual to reduce the
premium in the individual’s name and provide quality protection for the insured.
•Only Insurance Services by referral are provided by Mario Cananzi Authorised Representative No 244704 of
Professional Investment Services Pty Ltd AFSL 234951 ABN 11 074 608 558.
Disclaimer: We are estate agents only and do not have any qualifications as investment
advisers. You should always discuss these matters with your financial advisor and/ or
accountant before making any commitment.