Brisbane-based Martin knew he wanted a self-managed super fund (SMSF) with his wife that would include property and return 5% or more net per annum. However, for Martin, the already complex navigation of SMSF setup was even more unfamiliar than it is for most. As a former US citizen, he didn’t know the rules and regulations that governed how to do this in his new home country of Australia.
Martin’s bank account rep had introduced him to Superannuation Property when he told her he wanted to start investing in property. He had just learned what a self-managed super fund was, and was looking at property-focused retirement strategies. The banks however, couldn’t offer what he was after: reliable cash flow in retirement that was possible only through quality rental property.
Removing the complexities of SMSF set up
Superannuation Property helped Martin with the set up of his self-managed super fund. From his point of view, it couldn’t have been more straightforward. Martin said, “they did all the work, and I signed the papers”.
Martin had been in financial arrangements with the bank, who until then, managed his investments. After setting up his SMSF and first property investment with Superannuation Property, Martin decided to trust them to take over management of all his investments and his financial planning. Superannuation Property built the strategy for Martin to achieve his goals for retirement.
For the first three years, Martin invested in a property through his SMSF every year. He started his SMSF property portfolio with a unit in New Farm that Superannuation Property recommended.
After that was finalised and he had a little more money put aside, Superannuation Property recommended a Chermside unit to invest in. The following year, he then invested in a townhouse in Buderim. Martin is now about to invest in a fourth unit, in Southpoint in South Bank, Brisbane.
Throughout this process, restrictions and regulations determined the type of property that could be invested in within superannuation. Martin relied upon Superannuation Property’s knowledge to find the best investment strategy within the limitations of what was allowable.
To add to the complexities, Martin was not yet an Australian citizen. He had limited understanding of Australian superannuation and taxation laws, and was concerned about the hidden costs and the hidden risks. None of his Australian colleagues had a self-managed super fund with property, so he didn’t have anyone to ask.
Martin put his trust in Superannuation Property and relied on their advice to navigate through these complexities.
“My gaps in knowledge were mostly around the reliability of the income and taxation issues as well as the costs associated with this type of structure.
“Dylan [Crowe, Managing Director of Superannuation Property] has always been able to explain it to me well enough that I was comfortable with it, and it was just a matter of making it happen. “For me it was very painless…it might not have been quite so painless for Superannuation Property with all the questions I asked, but it was certainly painless for me.”
Ongoing support and financial advice
“I still rely on Jonathan [McCullough, Financial Planning Director] and Dylan to explain Australia’s taxation system to me. It seems as though every year something new comes up that I need to know about and work through.
“If I have a question, there is always a quick answer, even if it’s not always the easy answer.
“Most of the time I feel confident with their explanations, but if I ever struggle, they’re patient with me asking the questions a few times before the answers really sink in. They understand why I’m asking the questions.”
According to Martin, Superannuation Property endeavours to make the experience for clients perfect. He says when it comes down to locating the properties and doing the deals, everything has always run smoothly.
He says, “it has been the most painless I’ve ever had because of the effort Superannuation Property make. Outside of this super fund, I’ve probably bought and sold 10 houses over my lifetime. Nothing has ever been as easy as closing on these deals through Superannuation Property.
“Superannuation Property got me into the program with very little pain, and I’m getting pretty much what I want out of it in terms of return.
“My experience working with Superannuation Property has been exceptional.”
If you’d like to learn how to remove the complexities of property investment within your super, book a free consultation with Superannuation Property today.