"Are you looking to conservatively INCREASE your Australian Super Fund yield?
Instead of receiving dividends through managed funds, have you considered buying high quality commercial property in your super fund to create a passive retirement income stream?
Differences between purchasing Commercial Property and Managed Funds
These are just a few examples of how Commercial Property may be better than Dividends. Keep scrolling to find out how you can get started on buying a commercial property in your Australian super fund.
|Pays Quarteley||Pays Monthly|
|Non Physical Assets||Physical Assets|
|Wide Spread of shares||Only Select Properties|
|Concerns over 2019 Stock Crash||Stable Commercial Property Prices|
|No Control over company that you've invested in||More Control, Flexibility to renovate|
|Banks will lend little amounts of shares||Banks will lend lots of money for commercial loans|
|Global Market||Local Market (more isolated from Global trends)|
Managed Funds $90,000 vs Commercial Property $150,000
Here's an example of how you may be able to conservatively INCREASE YOUR YIELD.
Mr Smith (not his real name) had approx. $1.5m of his Australian Super Fund money invested in Managed Funds and was receiving approx 4% return.
He was getting approx $90,000 pa. He was happy until all of sudden his shares starting loosing $80,000 in value in the space of a few weeks. At that point he realised he had no control over his own hard earned money in the fund.
The solution. He ended up financing and buying a commercial property with govt backed tenants. He now has control over his funds and the best bit he is making approx. $3000 per week or $150,000 per year.
On top of that he will also get the capital gain as well!
If you'd like to know more details as to how this is done you are welcome to come along to one our seminars in Sydney or Melbourne, where you can learn how it may be possible to CONSERVATIVELY increase the yield in your Australian Super Fund.
*The above is an example only and uses an average managed fund yield of 6%
Whose in control of your money?
This website contains general information only. It is not investment advice. You must consult a team of professional advisers before making any investment decision. These professional licenced advisers will take into account your personal circumstances.
Some Potential Risks for Australian Super Fund commercial property investors:-
The main risk is the loss of a tenant which is the income stream. Because of the borrowing within the SMSF this may lead to being not able to meet your SMSFs loan obligations. Of course there are ways to mitigate this risk, such as properties with strong tenants on strong leases.
- There may also be a change in your personal circumstances.
- Financial fall in property value The value of your commercial property investment can fall for a few reasons, such as a general fall in property market prices.
- Taxation risk: The rules that govern Australian Super Funds can and do change.
We always end with the good news!
Here are some possible advantages for self managed superannuation fund commercial property investors.
- As investor you are able to control your own money.
- Due to the leverage there is the possibility for increased returns. Even with a simple gearing of 50% a clever investment strategy together with a Limited Recourse Borrowing Arrangement (LRBA) can potentially improve your SMSF's return on investment.
- Diversification: Many Financial Planners recommend Managed Funds for Australian Superannuation Funds. We are saying that as well as managed funds, with the use of commercial property as well, a diversified portfolio may lessen risk and improve returns over time. Using a LRBA can help in getting diversification in your SMSF.
- and finally
- Tax advantages: Any tax payable within an Australian Super Fund may be lessened as Interest and other borrowing expenses are still generally tax deductible to your SMSF.