SMSF Strategy Session

Self-Managed Super Fund

Use your Superannuation to buy property
Name*

First NameLast Name
Phone Number*
Phone Number
Email*
example@example.com
What are you looking to do?
Is the combined super balance greater than $300k?*
Do the clients have greater than 15 years until retirement?*
Do the clients have good health conditions?*
Do the clients have secure (2years +) of employment & SGC?*
Are the clients either considered a Growth or High Growth risk profile?*
Incubation Phase
With your primary goal kept in mind of purchasing a property through your super. We believe right now is not the most appropriate time to achieve this goal. We have come across many people in a similar situation which is why we built a strategy to help like-minded individuals achieve this goal sooner, rather than later. We call this our incubation phase. Basically, we will ensure that your super fund is working the best it can to grow your balance, along with your super contributions. We will touch base every 12 months to keep you informed about the performance and when our mortgage broker gives you the green tick of approval for proceeding to purchase a property inside your super we will be straight to you to inform you of the good news and then proceed to get you into a buy-ready position.

Let's get all of the hard work out of the way now so we don't have to later, I will start with the fact find now. [Continue into fact find and onboarding process]
SMSF Strategy

Congratualtions, you have passed the preliminary test for a SMSF.
Investment - Risks

With a Self-Managed Super Fund you will become responsible directors and it is important to start off with letting you know some of the risks associated with a SMSF
Please tick each of the following when you have discussed the details regardings LRBA

Higher deposit requirements (between 20% - 40% [usually 30%])Higher interest rates (approx an additonal 2% of investment loans) [classed as commercial loans, even for residential property)Less liquidity for emergencies (you won't be able to quickly sell the property, however if expenses are required for the property. ie no tennant, loss of income, interest rate increases, or maintence, you will be deversified into shares/managed funds which will be able to assist with these unforseen expenses) [$10k cash reserve is also set]Single Contract Properties only (you can't buy the land and then build on it)Deversification Rule (can't have 90% of funds in less than one asset)Can buy second hand or brand new (all depreciation benefits only applied to brand new)Unable to develop the property (Can't add a granny flat or a second story)Compliance requirements (Ahereing to the sole purpose test, tax returns and audits etc. which we take care of)Use the property for personal purposes (unable to use as a holiday home or rent out to related parties)Provide rent free acomodation (must be market value)Borrow money for renovations (you will need cash to fund renovations requirementsPurchase the property from a related partyChange the nature of the property (converting residential to commercial)Use the equity from the property to purchase a second property. (you will need to build another cash deposit from the remaining funds in shares plus your SGC.
Investment - Benefits

Some of the benfits with purchasing property inside a SMSF (one of the biggest advantages of a SMSF is being able to leverage your assets to then at retirment attract no capital gains tax)
Type a question

No out of pocket expense (fees are all super related, including deposit, stamp duty, legal fees, rates, land lord insurances and the set up costs etc).Only way to leverage assets within Superannuation is via property [commercial or residential] (OPM - other peoples money)Deversify your assets into shares & property (also gold bullion, jewerllery, artwork, vintage cars, you can even lend out your money, kind of like a bank)0% CGT at retirement, 10% prior (33% discount of 15% = 10%)Tax free rental income at retirement (ideally structure the loan to be paid out in full upon retirement)Can buy second hand or brand new (all depreciation benefits with brand new)Builders warranty with brand new buildsLease commercial property to a business owned by a member (example a car mechanic purchases the building with the SMSF and leases the rent to his car mechanic business).
Structure
When setting up your Self-Managed Super Fund, we will need to set up 2x entities, one will be your SMSF, with a corporate trustee, that you 2 will be the directors of. This will act as the cash hub for the fund, where your property expenses, accounting fees, and insurance premiums will be deducted from your rental income and Super Guarantee contributions paid into.

The second entity will be a Bare Trust, also with a corporate trustee, the purpose of this will be the name that is used on the contract of sale for the property inside of your super.

Should you be in a position and wish to purchase a second investment property, you will need another cash deposit (unable to use the equity from the first property). Then we would set up another Bare Trust entity.
Has the structure been explained to the client?*
Set up process
- Firstly our mortgage broker will run the numbers to ensure it's an appropriate strategy with the banks.
- Statement of Advice (2 weeks)
- This will be reviewed by an independent auditor to ensure it's in your best interest.
- SOA presentation (booking of insurance tele-interview)
- SMSF set up [including bank accounts] (between 5-28 business days, depending on the ATO with the ABN approval)
- Documents (signing pages only) are mailed to the client with instructions. Included will be partial rollover forms
- Once ABN is approved and rollovers are received the client will then be in a Buy-ready position. This is when the clients will be referred to a buyer's agent/real estate agent.
- Once the property has settled, we will then invest the surplus funds into Dimensional.
Has the process been explained to the client?*
Fees
My Online Adviser's fees for setting up and managing a Self-Managed Super Fund.

$10k upfront fee (A-Z package) includes SOA [advice regarding the set up of your SMSF, investment advice after the settlement of your property purchase, insurance advice, complex lending with our mortgage broker at My Online Loans and other complimentary advice that we see to be appropriate.

2.2% of FUM (funds under management) The funds under management will be calculated after the settlement of your investment property and will not include the property itself, just the shares/managed funds that we invest via our investment philosophy with Dimensional Fund Advisers.)

$2,640 per annum ($220per month) [SMSF administration, including tax return and audit].
Have our fees been discussed with the client?*
Should be Empty:

Self-Managed Super Fund

Incubation Phase

SMSF Strategy

Investment - Risks

Investment - Benefits

Structure

Set up process

Fees