SMSF and Property Investment

ABOUT THE CLIENT

 

Life Stage: Professional ‐‐ With Children

Employment Status: Employee / PAYG

Household Income Range: $250K ‐‐ $500K

Asset Summary: Own home approx $1m, savings $50k, superannuation $300k

Liability Summary: Home Loan $300k

THEIR NEEDS

  1. Clients were looking to build a large investment property portfolio and wanted advice on the best structures for this.
    2. Clients were very interested in exploring avenues to invest in property via SMSF.
  2. They needed to know if it was beneficial to also invest in their personal names.

OUR SOLUTION

  1. Provided an in-­depth analysis to the clients on investing via SMSF as well as growing a large portfolio in personal name and all the benefits and risks associated with it.
  2. After the analysis we set up the SMSF to enable the clients to purchase future properties within SMSF structure.
  3. We also showed the clients how they could also afford to build a 7 -­ 10 property portfolio over a relatively short period of time and how to structure it to take advantage of all tax breaks as well as get around paying land tax as that is a hidden tax that most investors don’t take into account when purchasing properties.

BENEFITS TO CLIENT

  1. Clients were able to purchase multiple properties in their SMSF and can now benefit from low tax environment in SMSF with additional 0% tax at retirement stage.
  2. Clients have started building their property portfolio in their personal name. Within 18 months they are on their third investment property already and are looking to buy another two without any major impact on their day to day cashflow.