Property in Super? – It is not whether you can do it – It is HOW can you do it PROPERLY?

At last we have a government ... sort of ...  at least there is movement in the Australian political space.

Now it is time to review our wealth creation strategies using property as a class of asset. More specifically having leveraged property in your  Superannuation fund.

I have been receiving an increasing level of enquiries about how the Super Fund structure should best be used to produce a better result. See below for a list of questions people want answered.

In Australia, property as a class of asset, has seen consistent growth over many years. By viewing it as a long-term investment, many people have created wealth simply by acquiring and holding onto property.

More wealth was created by those who leveraged the investment by borrowing to acquire property - as you all know.

Borrowing allows the investor to derive a larger capital gain (and capital loss) base using only a small deposit.

Banks and financial institutions allow you to borrow/gear up to 95% of the value of property assets compared with 50% (average) on purchase of shares.

Most property investors know that the Howard government changed the rules allowing Super funds to borrow to fund rental properties.

The rules have not been simple. The government has again changed the rules to help you get there with an improved result!!

Some of the enquiries I have been receiving regarding Self Managed Super Funds (SMSF) include the following:

-          The big picture of super and tax and now

-          SMSF – limitations and contrast to public funds – when is it appropriate/practical to set up a SMSF - what minimum value make it worthwhile

-          Brief history of how super funds & loans to acquire assets – especially leveraged property

-          What are the rules that have to now be satisfied before a fund is allowed to borrow

-          What are warrants? Are these still necessary? How the changes affect & simplify the landscape

-          Who can lend to the fund?

-          What are the minimum terms for the loan to the fund? Who is lending? Can a member provide a loan?

-          Is a trust structure is necessary?

-          Cab an SMSF invest in property located overseas e.g. USA?

-          What risks are involved with fund borrowing?

-          Can other assets of the fund be exposed to risks?

-          What Loan to Value Ratios should be used or are permitted?

-          Is  interest on the loan deductible? Can related parties give guarantees for the loan?

-          Can assets be acquired from related parties

-          Are the assets protected from creditors of the member?

-          How do the new rules affect or change the old rules

-          The place of the fund's Investment and Risk Management Strategies

-          SMSF’s & investments in property & Land tax implications & Stamp duties

-          Investing options for SMSF’s i.e. trusts

-          Strategies in a SMSF – what is possible?

-          Examples ....

Well I don’t have all answers. So I thought I should find someone who knew this stuff very well and can explain it in simple lay terms for us.

Senior tax adviser and guru in tax planning and superannuation strategies Chris Batten is the person I ask when things get too hard for me as an adviser. Together with  Macquarie Group Services Pty Ltd Senior Adviser Paul Gerrard, they kindly accepted to talk to a group of us who want to find out how to correctly deal with this opportunity.

As the adviser’s adviser, Chris has extensive experience in advising accountants, solicitors & financial planners in tax planning, resolving their clients issues and better planning.

Not only will Chris make the presentation he will stay with us to answer questions as part of a panel after the coffee break

To register

Don’t  miss  out. There are limited seats

This is  a  rare  opportunity for you  to  learn  from  the  best, find  out  what’s new, what  works  better, or just  make  sure you are  on  the  right track with Super.

-          Date               Wednesday 29^th September 2010

-          Time                Registration 6.00 for 6.30 start – food & coffee

·         PropertyBuyer – Rich Harvey - state of the property market 6.30

·         Financial Spectrum – Brenton Tong – Financial planning & property – 6.45

·         Chris Batten & Paul Gerrard – Super & Property – 7.00

·         Coffee break 8.00

·         Flavio Meoli – Super Fund Auditor – what auditor looks for, problems to avoid 8.30

·         Q&A with a panel including speakers & fund auditor 8.35 pm

-          Venue            Masonic Centre  Goulburn Street (Cnr Castlreagh) Sydney – Composite Room

-          Parking           Diagonally across the road on Goulburn Street cnr Elizabeth

Click here to register -

Chris only consults to accountants, solicitors & financial planners only. So when a client wants to talk to him he also has to have the accountant there. This means the client fees are $330/hr x 2 = $660.

But all we want to do is cover expenses. To do that there will be a fee of $95 per person.  

Early Bird - Book and pay by Wednesday 15^th of September 2010  - all you have to pay is $67. Click here to register

Here is another incentive to help you decide quickly – For only $77 early bird price you can bring your wife, husband, partner, friend business associate. You can’t beat that. That means it costs you less than $39/person. There are limited seats book now at Click here to register –

But wait there is more ...

Before Chris starts his presentation, we have asked Rich Harvey of PropertyBuyer to give us a briefing on the state of the property market post election.

As Australia’s leading Buyers Agent, Rich has won 17 major awards including the prestigious National Telstra Business award in 2007 and also named the winner "Best Buyers Agent in Australia" by the Real Estate Institute of Australia

CEO of financial planning group Financial Spectrum  Brenton Tong will brief us on issues and opportunities arising when advising clients on including property as part of their superannuation investment strategies.

Super Fund auditor – Flavio Meoli will brief us on what problems he encounters in auditing funds. To be compliant a fund has to pass the audit test.

Shukri Barbara from Property Tax Specialists will be MC for the evening. To make it more understandable Shukri will facilitate by asking additional questions on behalf of the audience – where necessary.

Money Back Guarantee

If you don’t think you have learned anything from the presentation – you can have your money back. There is no risk.

Kind Regards

Shukri Barbara

Property Tax Specialists
Barbara & Co cpa
phone 02 9411 8133
fax 02 9412 2833
mobile 0410 588 305  
post: P.O.Box 665  Chatswood  NSW  2057
office  
Level 5
suite 509, 71-73 Archer Street
Chatswood NSW  2067
website www.propertytaxspecialists.com.au