The "Step-By-Step Guide To Buying Property With A Self-Managed Super Fund" Slideshow
•Download as PPTX, PDF•
0 likes•356 views
Everything you need to know about your taking control of your superannuation and building a portfolio of one or more investment properties within super…
Recommended
Recommended
More Related Content
What's hot
What's hot (18)
Similar to The "Step-By-Step Guide To Buying Property With A Self-Managed Super Fund" Slideshow
Similar to The "Step-By-Step Guide To Buying Property With A Self-Managed Super Fund" Slideshow (20)
Recently uploaded
Recently uploaded (20)
The "Step-By-Step Guide To Buying Property With A Self-Managed Super Fund" Slideshow
- 1. “The step-by-step guide to buying property with super” Presented by SF Wealth Management P/L, an authorised representative of Luiten Shores Financial Planning ACN 141 687 836 Australian Financial Services Licence No. 358840 © Super Finance – All rights reserved
- 2. Disclaimer SF Wealth Management Pty Ltd is an authorised representative of Luiten Shores Financial Planning Pty Ltd, ACN 141 687 836, Australian Financial Services Licence No. 358840 and Life Insurance Broker. This document has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained in this document is General Advice and does not take into account any person’s investment objectives, financial situation and particular needs. Before making any investment decision based on this advice, you should consider, with or without the assistance of an adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. A Product Disclosure Statement on any financial product mentioned in this document should also be obtained and read prior to proceeding with an investment decision. Luiten Shores Financial Planning and its representatives may have an interest or associations with the product providers detailed in this report, and will be entitled to receive remuneration for the provision of personal financial product advice by means of commissions and/or fees and other benefits. If you proceed with personal advice, details of remuneration and associations will be detailed in full within a Financial Services Guide and Statement of Advice. Although every effort has been made to verify the accuracy of the information contained in this document, Luiten Shores Financial Planning Pty Ltd, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this document or any loss or damage suffered by any person directly or indirectly through relying on this information. © Super Finance – All rights reserved
- 3. Foreword The process of utilising your super to invest in property is complex and often difficult to implement. To do this, we call upon a number of experts to execute various important tasks: 1. Financial Planner (strategist) 2. Mortgage Broker (lending expert) 3. Accountant (executioner) 4. Lawyer (compliance manager) © Super Finance – All rights reserved This professional network combines expert knowledge into a single advisory unit… providing you with One Voice, One Direction.
- 4. Outside Super vs Inside Super © Super Finance – All rights reserved
- 5. WHAT YOU’LL DISCOVER Who is suitable to buy property through super More reasons to buy property through a SMSF The process of buying investment property through super Traps and pitfalls to avoid How to take the next steps © Super Finance – All rights reserved
- 6. SF Wealth Management (aka Super Finance) specialises in helping our clients grow their wealth through clever investment techniques including SMSF and direct property (if this is deemed to be a suitable strategy). Founder and Principal, Yannick Ieko, was named the 2010 Rising Star of Vow Financial (Out of hundreds of brokers). Already helped hundreds of Australians do this ABOUT SF WEALTH MANAGEMENT © Super Finance – All rights reserved
- 7. WHO QUALIFIES? Minimum super balance of approx. $150,000 (combined between up to four members) Household income of $90K+ Be over 18 years old Be a non-government employee Capable of trustee responsibilities © Super Finance – All rights reserved
- 8. WHY BUY PROPERTY THROUGH SUPER? Super is the ultimate wealth accelerator Significant tax advantages You may already have the money in super for the deposit No out-of-pocket costs / “cashflow friendly” More control over your super Access direct property through super © Super Finance – All rights reserved
- 9. 516,925 SMSFs as of Sep 2013. Source: ATO © Super Finance – All rights reserved
- 10. “What is the process of setting up a Self Managed Super Fund?” © Super Finance – All rights reserved
- 11. SMSF = TRUST A trust: “a legal entity through which things are done on behalf of someone else” One or more trustees: people who make decisions on behalf of the trust A trust’s members: people to whom the benefits will be distributed © Super Finance – All rights reserved
- 12. Trust Structure © Super Finance – All rights reserved
- 13. TRUSTEE RESPONSIBILITIES • Becoming a Trustee of an SMSF carries certain duties and responsibilities. These include: Ensuring the fund is properly managed Making sure the fund complies with all laws Manage the fund separate to your own personal affairs • New trustees (or Directors of corporate trustees) must complete and sign a declaration (NAT 71089) to confirm you understand your duties and responsibilities. © Super Finance – All rights reserved
- 14. HOW TO GET SET UP A full Financial Plan for the SMSF and its Members Setup of your Self-Managed Super Fund Setup of the bare trust Setup of 2 x corporate trustees Setup of SMSF bank account Manage the rollover from your existing fund(s) into your SMSF Guaranteed legal documents © Super Finance – All rights reserved
- 15. HOW LONG DOES IT TAKE? Request for Tax File Numbers and ABNs from ATO …up to 28 days Super fund rollovers… up to 21 days Our Average timeframe… 35 days We guarantee… 60 days © Super Finance – All rights reserved
- 16. You can now purchase: Established property “Off the plan” ⤬House and land package YOU’RE READY TO BUY! Tip: We strongly encourage you to sign a 60 or 90 day settlement contract Tip: Make absolutely sure you sign any contract in the correct name (NOT your own personal name, or the SMSF name) © Super Finance – All rights reserved
- 17. GETTING FINANCE You can usually borrow up to 80% of the property value Your super fund has to provide the 20% deposit, plus purchase costs of ~5% Simple affordability calculation: multiply your super balance by 3 (e.g. 200K in super means you can afford a $600K property) © Super Finance – All rights reserved
- 18. FINANCING THROUGH SUPER Application fees are a higher than for standard loans Interest rates are currently around 1% higher But… the benefits easily outweigh these higher costs © Super Finance – All rights reserved
- 19. ADVANCED SMSF STRATEGIES “Related Party Loan”: Becoming your own SMSF private banker Purchasing commercial property through super Ability to source from a range of sophisticated investments incl. Structured Products & Manufactured Equity Product Recontribution strategies Transition to retirement strategies © Super Finance – All rights reserved
- 20. ACCESSING YOUR MONEY You’re free to sell any property(s) within super prior to retirement age, although you’re not able to withdraw the funds until at least age 55 for some and 60 for most If you do sell a property before retirement, then any capital gains on the sale are taxed at 10%, assuming you’ve held the property for at least 12 months Zero tax is payable in retirement “Recycle” taxable income and convert it into non-taxable income © Super Finance – All rights reserved
- 21. TOP 6 REASONS TO CHOOSE SF WEALTH MANAGEMENT 1) We specialise in SMSF and building investment strategies for SMSF including the use of direct property investments 2) We are authorised financial advisers and are qualified to deliver financial advice 3) We don’t cut corners with cut-price legal documents 4) Our solutions are fully customised to your situation 5) Value for money 6) Our unique Triple Guarantee © Super Finance – All rights reserved
- 22. OUR UNIQUE TRIPLE GUARANTEE 1) If we don’t deliver on time and set up your Self-Managed Super Fund so you’re able to have a property sitting in your SMSF within 60 days of engaging our services, we will waive the entire cost of your SMSF setup. 2) If we don’t fully disclose all fees and costs within the transaction, we’ll pay them for you. 3) If you’re not happy with our service for any reason, we’ll happily arrange a handover to another provider of your choice. © Super Finance – All rights reserved
- 23. WHAT TO DO NOW Contact us on 1300 781 680 Or fill in the form on your right to arrange an exploratory discussion. © Super Finance – All rights reserved
Editor's Notes
- “The Step-By-Step Guide To Buying Property With Super” Hi, this is Andy Maher for SF Wealth Management, with a message for anyone curious about how to invest in property via your own self-managed superannuation fund. Superannuation is one of the best wealth-creation vehicles available today, mainly because of its unique tax-protected status. While the top income tax rate is 46.5%, super contributions and income within super are taxed at just 15% in most cases, reducing to 0%. And changes to legislation in 2007 finally allowed Australians to borrow money within a Self-Managed Super Fund in order to buy assets such as residential or commercial property. Why might you want to do this? In a moment, I’ll tell you why, but before I do, it’s important that I show you this important compliance information.
- Please take a moment to read this slide - you can pause the video for a few moments if you like. This basically says that the information in this presentation is general in nature only, and does not take into account your personal circumstances, financial needs or objectives. Now that we’ve taken care of the formalities, let me return to the case for buying property within super, as opposed to outside super….
- Please take a moment to read this slide - you can pause the video for a few moments if you like. This basically says that the information in this presentation is general in nature only, and does not take into account your personal circumstances, financial needs or objectives. Now that we’ve taken care of the formalities, let me return to the case for buying property within super, as opposed to outside super….
- Just take a look at these graphs, which show a comparison of the two options. In this example, we’re comparing two people who invest $5,000 per year either inside super (the green line), or outside super (the purple line). Both investments inside and outside super earn 7.7% pa net of fees but before taxes. But with funds inside super taxed at just 15%, compared with 31.5% outside super (in this example), the “inside super” scenario delivers a much larger final sum. In fact in this example, investing within super delivers a “nest egg” at age 65 of $355,472, which is a whole $139,755 more than the “outside super” amount! What’s more, when identical drawings are taken out after age 65 to live on, the money invested inside super lasts 8 years longer, than the money invested outside super. The reason for the much better result within super, is of course the lower tax rates that apply to super contributions, as well as earnings and capital gains that apply to super investments. So the bottom line is that investing in assets within super - and that includes property - is one of the fastest and most secure ways to build wealth available in Australia today. There are many other reasons why buying property within super can be a very good idea, but before we get into those, let’s quickly preview what you’ll discover during this presentation…
- “The Step-By-Step Guide To Buying Property With Super” Hi, this is Andy Maher for SF Wealth Management, with a message for anyone curious about how to invest in property via your own self-managed superannuation fund. Superannuation is one of the best wealth-creation vehicles available today, mainly because of its unique tax-protected status. While the top income tax rate is 46.5%, super contributions and income within super are taxed at just 15% in most cases, reducing to 0%. And changes to legislation in 2007 finally allowed Australians to borrow money within a Self-Managed Super Fund in order to buy assets such as residential or commercial property. Why might you want to do this? In a moment, I’ll tell you why, but before I do, it’s important that I show you this important compliance information.