For many of our clients, the hardest step in this strategy is simply making the decision to opt in to a self-managed super fund (SMSF). Many individuals hesitate to start and run an SMSF due to concerns about time, costs, and complexity. While it is true that ongoing work is involved, partnering with our team means they can handle everything for you, including administration, accounting, record-keeping, reporting, and even investment advice.

In order to make the transition seamless, the strategies and guidance we offer fall under the category of what we like to call an SMMSF (self-managed MANAGED super funds). These programs handle everything on your behalf, led by experts behind the scenes. Keep in mind you still retain control over your investments, but at the same time benefit from readily available expert advice, allowing you to maximize the advantages of your SMSF. Although the set yearly fees of an SMSF may appear higher than the percentage-based fees charged by industry and retail funds, as your super balance grows, the annual fixed fee is likely to cost you less.

Explaining Self-Managed Super Funds

A self-managed super fund (SMSF) empowers you by giving you greater control over your investment assets. With an SMSF, you have the opportunity to:

• Make deposits to build a new home.
• Create a property portfolio that ensures a worry-free retirement.

Utilizing property investments within your superannuation is a highly effective way to achieve financial independence in retirement. We can direct you to proven programs that are designed to help you maximize the benefits of your SMSF through strategic property investment, offering the option of a tax-free retirement at the age of 60.

How SMSFs Work

A ‘normal’ industry or retail superannuation is essentially a special savings account for your retirement. It’s managed by a group of people who invest the money that you and your employer contribute. They put your money into different things, like shares and property, to help it grow over time.

An SMSF differs from industry or retail super funds in that it is a private fund managed by you for your own benefit. This means you have the freedom to choose how your money is invested.

You can establish an SMSF with up to three other members, such as family or friends. Generally, the members of the SMSF serve as trustees, either as individuals or as a corporate trustee. Of course, this ultimately means you bear the responsibility for adhering to relevant laws and regulations, making it crucial to collaborate with experienced professionals. With the hand-held guidance of our experts, you or your other members wont need to worry about any of this.

Why Choose an SMSF?

The majority of retired Australians rely primarily on the government pension, which often limits lifestyle options. Building a property portfolio within your super can provide a viable source of passive income, reducing the reliance on the government pension.

Key benefits of property investment within an SMSF include:

• Rental income paid to the SMSF and used for asset maintenance.
• Lower capital gains tax rate when selling the property.
• Income-producing benefits, resulting in rental income.
• Favorable tax advantages, leading to capital gains.
• Real estate investments offer low risk and dependable returns.

Borrowing to purchase property through your super may not be suitable for everyone. However, if you have a minimum of $160,000 in super or can combine the super of up to four family members or friends to meet the minimum requirement, an SMSF borrowing strategy is worth considering as an investment option.

SMSFs represent the fastest-growing sector in the superannuation industry, as more individuals recognize the benefits of leveraging their super to invest in property. Our team comprises licensed experts in both SMSFs and property investment. We establish long-term partnerships with our clients, guiding them from the initial learning stage to the acquisition of multiple investment properties and an early retirement.

If you’re interested in exploring whether the SMSF borrowing strategy is suitable for you, feel free to reach out to us and book a complimentary online strategy session with one of our senior strategists.

Understand the strategy of how you are able to purchase a property with your Super: Click here.