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GROW YOUR SUPER WITH PROPERTY
Step by step
The UUT is the owner of the investment property. - The UUT owns and holds the investment property until all units are purchased from the investor by the SMSF. The UUT provides the vehicle to enable the strategy to be compliant because the SMSF cannot incur debt. The investor becomes the borrower and over time the SMSF buys back wholly owned units from the investor through the UUT.
The member makes contributions to the SMSF.- Ongoing contributions are made into the SMSF through employer contributions or by the member of the SMSF or by salary sacrificing etc.
The SMSF buys units in the UUT. - Initial moneys in the fund should be at least $80,000 which are then used to purchase 20% of the units in the trust plus any property purchase costs. A remaining sum in the fund is kept as a reserve for ongoing costs. As additional funds accumulate the SMSF can buy back units through the UUT from the investor.
The investor borrows to invest from a lender. - Initially the investor uses existing assets as security to borrow up to 80% of the value of the investment property and negatively gears the percentage of units held against their taxable income.
The investor buys and sells units in the UUT.
- The investor purchases 80% of the units from the UUT. Ongoing the investor
receives funds from the UUT and sells back the units they hold to the SMSF. They
can then use these funds to reduce their loan and eventually pay it off.
Warning
No investment advice is provided to you. This presentation is not designed
for the purpose of providing personal financial or investment advice.
Information provided does not take into account your particular investment
objectives, financial situation or investment needs. You should assess whether
the information in this presentation is appropriate to your particular
investment objectives, financial situation and investment needs. You should do
this before making an investment decision on the basis of the information in
this presentation.
The concept and details presented on this page formulate a possible strategy
only and require the involvement of various professional experts in their
fields. You should seek the assistance of the appropriate experts as
explained above.
Equity Resource Financial Planning always consider alternative strategies as
part of their financial planning advice which we are happy to provide to you on
an individual basis. Equity Resource Financial Planning is an Authorised
Representative of
PATRON Financial Advice AFSL No 307379.
Strategy today.
Freedom tomorrow
