Super Smart Property Archives - Superannuation Smart Property

Navigating the world of property investment for super funds can seem daunting, especially if you’re over 40 and focused on building wealth for retirement. But what if you could turn your superannuation into a powerful tool for property investment? At Superannuation Smart Property, we’re committed to helping you make informed decisions that align with your retirement goals. Before diving into the specifics, you might find it helpful to explore the basics of superannuation on this Wikipedia page.

Understanding Property Investment for Super Funds

Property investment for super funds is a strategy that allows you to use your superannuation to invest in real estate. This approach can potentially offer higher returns compared to traditional superannuation investments. But why consider property investment? For starters, property is a tangible asset that can provide both rental income and capital growth. Plus, it’s a way to diversify your investment portfolio, which can be crucial in mitigating risks.

Why Choose Property Investment for Your Super Fund?

Potential for Higher Returns: Property investment can yield significant returns through rental income and property appreciation. Unlike shares or bonds, real estate is a physical asset that can increase in value over time.
Diversification: By investing in property, you diversify your super fund portfolio, reducing reliance on traditional investment vehicles like stocks and bonds.
Tax Benefits: Superannuation funds enjoy tax concessions, which can enhance the profitability of property investments. The tax rate on super fund earnings is generally lower than personal tax rates, making it an attractive option.

Challenges and Considerations

While the benefits are enticing, property investment for super funds isn’t without its challenges. It’s essential to be aware of the potential pitfalls:

Complex Regulations: The rules governing property investment through super funds can be complex. It’s crucial to understand the legal requirements and ensure compliance to avoid penalties.
Liquidity Issues: Real estate is not as liquid as other investments. If you need to access your funds quickly, selling a property can take time.
Market Fluctuations: Property values can fluctuate based on market conditions. It’s important to consider long-term trends rather than short-term gains.

How to Get Started with Property Investment for Super Funds

Self-Managed Super Fund (SMSF): To invest in property through your super, you’ll need to set up an SMSF. This gives you control over your investment choices, but also comes with responsibilities.
Seek Professional Advice: Consulting with financial advisors or property experts can provide valuable insights and help you navigate the complexities of property investment.
Research and Plan: Conduct thorough research on potential properties and develop a clear investment strategy. Consider factors like location, property type, and market trends.
Understand the Costs: Be aware of the costs involved, including purchase price, maintenance, and potential renovation expenses. Ensure your super fund has sufficient liquidity to cover these costs.

Real-Life Success Stories

Consider Jane, a 45-year-old teacher who used her SMSF to invest in a rental property. By carefully selecting a property in a growing suburb, she was able to generate a steady rental income and watch her investment appreciate over time. Or take John, a 50-year-old engineer, who diversified his super fund by investing in commercial property, reaping the benefits of long-term leases and stable returns.

Common Misconceptions

“It’s Too Risky”: While all investments carry risk, property can be a stable investment if approached with a long-term perspective and thorough research.
“I Need a Lot of Money”: While initial costs can be high, leveraging your super fund can make property investment more accessible than you might think.
“It’s Too Complicated”: With the right guidance and resources, navigating the complexities of property investment can become manageable.

Your Next Steps

Are you ready to explore the potential of property investment for your super fund? Don’t let uncertainty hold you back. Take control of your retirement strategy today. For more detailed guidance, download our FREE guide: How to Build Property Wealth Using Your Super. This resource is packed with insights and tips to help you make informed decisions and maximise your superannuation’s potential.

Why being terminated was the best thing that happened to me, and my clients!

“I’m not a salesman, but if I believe in what I’m selling, then I have no problem with selling it.” This mindset helped me land my job… and ultimately, it also cost me that job. Here’s why.

I’ve always been someone who cannot, for the life of me, sell something I don’t genuinely believe in. In this case, I believed in the product—the service we provided—but I couldn’t stand behind certain house and land packages we were promoting that used it. That was my challenge. My mum once told me, “Never bother lying, Lisa, you’re a terrible liar.” And she was right. I’m not good at it—never have been. It would be written all over my face. I’m brutally honest—maybe too much sometimes—but it’s just how I operate. It’s the only way I know how to be.

Take, for example, Sam, one of my B2B clients. He found a property listed that he was personally interested in. When he asked me about it, I did the research. The property was in an area showing little to no demand in the NDIS space. I called an SDA provider who knew the region, and he confirmed that investing there wasn’t the best choice. So, I called Sam and said, “I can’t sell you that property. There just isn’t enough demand in that area. But I can recommend better options in areas B and C.” That honesty built a trust between us that’s lasted to this day. We’ve become friends, and I’m proud of that.

For me, integrity, honesty, and genuinely wanting my clients to succeed are non-negotiable. Those values are at the heart of my own business. Running a business based on these principles—carefully selecting properties that align with what’s best for my clients—is what drives me. I don’t believe in “a sale at any cost.” I don’t want to be that person, and I definitely didn’t want my business to follow the same path as others in the industry who compromise these values. I love what I do. I’m passionate about helping people make informed property investment decisions and grow their wealth, particularly for retirement. Maybe it’s because I started my own SMSF property investment journey as a client before I became a professional in the space, but I have a strong conviction about how I want to treat my clients.

At Superannuation Smart Property, we work closely with investors who want to invest in property through their SMSF. We focus on building new house-and-land packages—something that wasn’t possible just a few years ago, especially when borrowings were tied to the purchase. Thanks to the connections we have with various facilitators, we’ve made it possible for clients to build new properties using a single-part contract, ensuring full compliance with the SIS Act that governs SMSFs.

I’ll admit, when I was let go from my previous role, my ego took a bit of a hit. It was the first time in my career that I’d been fired, and it wasn’t a great feeling. But I quickly realized it was a blessing in disguise. Still, you always hope you can make a difference. And that’s when it hit me—I could make a real difference. By working directly with clients, I could offer a wider variety of properties across the country. I could fully control the types of investments I presented and ensure they truly benefited my clients. It was a new chapter, and I was exactly where I needed to be. The feeling of being in control of my own business was incredibly empowering.

I’m excited to have the opportunity to chat with you—whether it’s with you, your family, friends, or clients—to see how I can assist in navigating the world of property investment through your SMSF.

Let’s talk soon! Feel free to book an online meeting directly into my calendar via this link: Book a meeting with Lisa Thomas – Superannuation Smart Property

Read more about Lisa Thomas and Tayla Thomas on our ‘About Us’ page.