CASE STUDY – Recently Re-married, Jan and Bill Pooled Super Into SMSF To Begin Property Investment

CASE STUDY – Recently re-married, Jan & Bill pooled super into SMSF to begin property investment


Starting again with a fresh beginning our couple, Jan and Bill (not real names), each had experience with several property investments, but some had been sold for separation settlements and costs. With a new life together, aged in their early 40’s, they were told by their advisor and their mortgage broker that property inside their own super fund would have more advantages especially with a low tax rate on investment earnings (15%) and potentially the investment will be all tax free and capital gains tax free in the super fund when they reach retirement. The strategy was to become controllers of their super and wealth. The structure was to start a self-managed super fund (SMSF) and pool their 3 corporate super funds all into the SMSF. This meant they had just over $100,000 and they already had their eyes on the investment.

The broker called us and SuperBenefit arranged the paperwork to start the SMSF – the Trust Deed order, the ABN & TFN application, the Bank account form, and the Requests to roll-over. We met and explained the responsibilities and compliance requirements of SMSF, that they will be members and also Trustees of this special purpose Trust (SMSF). We explained that they will sign a Declaration required by the Australian Tax Office (ATO) which states they understand their responsibilities. They were relieved to know that they would not be left with all the work – that was what SuperBenefit would take care of for them! They had support – all compliance is taken care of and monitored by SuperBenefit.

The papers were signed and the SMSF had commenced. Once monies rolled over from the 3 corporate super funds, they were able to confirm the property deal they had found. The first one fell through, the builder had changed the deal – reduced the extras and it did not have the same potential yield in Jan and Bill’s eyes. So they looked for another opportunity. Five months later there it was – the location was ideal – near transport and shops and schools, ideal for rental appeal. They contacted the broker to do the sums – Martin’s expertise with dozens of loans and dealings with over a dozen banks, meant he could do the numbers before applying, The deposit, the amount to borrow and the costs to set up the bare trust (that will own the property until the loan is paid out) and the limited recourse loan would work.

They were excited – they asked SuperBenefit for the SMSF cheque book, a deposit was paid from the SMSF (if you pay a deposit personally, it will be treated as a contribution to the SMSF, so watch the contribution caps) and the papers to apply for the bank loan and structure were completed with help from Martin.

Their strategy to build wealth with property in a low tax environment had begun.

What is YOUR story? What is your experience? Share it here with us.

Or if you have specific questions, give us a call 0407 361 596, for a no-obligation strategy session and get your FREE Glossary of 200 super terms all explained!

Interested to know what self-managed super (SMSF) is all about, how to get setup FREE and if it is for you? We have FREE seminars and bonuses every month – Self Managed Super Fund Roadmap (all you need to know) see 1 SMSF – FREE Seminars or call us 0407 361 596

Get our FREE Expert Guide – Self-Managed Super and You – it has all the info you need to know and checklists to determine if SMSF is for you and what steps are needed to set up. It also gives you ALL the Aust Tax Office publications about SMSF (NAT XXXX). Get you copy now – click “Download” top right hand side above. You’ll also get monthly SMSF news, investment teaching and upcoming seminar and workshop briefs! Download your FREE Guide now!


About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit will SET UP your SMSF and provide investment education for a better result. We take care of all your administration, accounting, ATO lodgement and audit of SMSFs, working with you and your advisors. If you want advice we can arrange one of our recommended advisors and accountants to meet with you, as we do not give advice, but take instruction only. Take control of your super, including property shares and other assets. Learn how to be your own advisor - make better decisions - by being mentored and coached to invest your own super wisely and strategically by qualified partners. Book to come to an event to find out more, or - Call us 0407 361 596, no obligation FREE strategy call.
This entry was posted in 2 Past Newsletter Topics, Case Studies of Clients, Superannuation General and tagged , , , . Bookmark the permalink.

2 Responses to CASE STUDY – Recently Re-married, Jan and Bill Pooled Super Into SMSF To Begin Property Investment

  1. Reblogged this on Australian Advisory Service and commented:
    Very interesting case study!

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s