Turbocharge Your SMSF

Turbocharge your SMSF

with Phil Allen

Introduction

Phil:

Hi, thanks for joining us on this fantastic webinar based on how to turbocharge your SMSF.

What we’d like to do today is show you how to take your SMSF from a balance of around 900,000, 

the example I’m going to show you later, to about $1.7million

And you can do all of that without working any harder, without even changing your lifestyle,

and more importantly, without putting your hand in your pocket.

So how is that possible?

And who are we looking for?

So the four main people that would be of interest today are trustees of existing SMSF’s,

people who are really keen to turbocharge their SMSF, and trustees of Super funds that have between $150,000 and over $200,000 in their current balance,

and people that really want to get the retirement that they thought they can only dream of.

That’s my particular goal today.

So you’re in the right place

if you’re looking to retire earlier, or you want to retire wealthier, or you want to retire healthier.

It’s a proven fact, the more you have in retirement monies, the healthier and wealthier you will be.

So my promise today is by the end of the webinar, you should have a clear understanding of how to turbocharge your SMSF.

And also in return, with your permission, of course,

I’d like to create a personalised roadmap for you  to turbocharge your SMSF.

Is that fair enough?

Well, who am I?

Well, over the last 35 years, I’ve been showing people how to different strategies in their SMSF.

And the last five or six years are specialising in the NDIS properties as well.

So Latitude Property are a collection of experts 

that are helping everyday Australians to secure their financial future through property.

Let’s have a bit of a deep dive here.

Well, the average life expectancy is about 83 years of age, which is fantastic.

It’s gone up a couple of years but unfortunately, the average superfund is not that high.

It’s between 60 and 64 years of age. It’s only $213,000.

But to get a comfortable retirement,

you’re going to need about $640,000 as a single person or just over a million dollars as a couple.

So how’s your retirement looking?

Let’s have a look.

So what about the pension though?

Well, 50% of Australians between 66 and 74

are currently relying on some form of pension as their primary resource of income.

Well, let’s have a look then.

The maximum pension is only $936 a fortnight for a single person.

For couples, it’s $1,400. I don’t know about you, 

but I don’t know anyone that’s happy living on pension alone.

So how much do you need?

Well, as a rule of thumb, you’re going to need about 80% of your current weekly income.

So whatever your income is, just think about that.

What’s about 80% of your income?

You don’t want to be living on poverty line.

So how much will you need in your retirement?

Just do that quick sum for me.

So some of the secrets I’d like to share is the first one is to show you

how to invest in property that can add $2 million to your SMSF by the time you retire

and leave you with an asset producing income of $2 million as well.

Secret number two is how you successfully invest in property without working any harder, changing your lifestyle or putting your hand in your pocket.

That’s great.

And how you can use property to add more in one month.

This is incredible.

In one month than you can in one year using traditional investment methods.

And the fourth secret, of course, is how you can do all of that with just a balance of $150,000 to $200,000.

So let’s have a look.

Different types of properties that you can invest in 

what we call dual key, where you get multiple incomes, dual occupancy, similar type of investment

or co-living, which is increasingly popular at the moment.

These are yielding around  six to nine percent gross.

And especially with the current rental pinch on these are really growing in popularity.

The one I want to concentrate today is the NDIS.

The NDIS or SDA properties that yield about 10 to 16 percent.

You’ve obviously heard about them.

Let’s have a bit of a deep dive into them.

So whats an SDA property or an NDIS property?

We talk about interchangeable.

The SDA is a purpose built house

an apartment designed for people with a disability that need support.

They need your support.

SDA includes unique features that help people to live independently.

This is so important to get people to live independently of themselves.

One of the questions I do get is, is the SDA here to stay?

Well, yes, of course it is.

It’s federally funded and state government funded with an act of parliament that shows itguarantees it for 20 years.

The SDA funding is only 0.6% of all the payments made through 

The NDIS in 2021 out of a budget of 700 million, that’s only 186 million dollars been spent on the SDA.

So you can see there’s a long way to go.

The Albanese government, when they came into office, they pledged to support the NDIS.

Even the liberals, of course, as well.

It’s what they call a bipartisan agreement, which is great.

So both sides of parliament are happy to fund it for 20 years to help support the 4.4 million people in Australia at the moment suffering from disabilities.

So let’s have a look at an example of how this would work and turbocharge your SMSF.

So I picked a property here just an average property, so an example of 895,000 dollars.

It’s a two-bedroom, what we call a two plus one.

So here, two plus one.

The one is for an overnight carer to stay in the property

So 895,000, adding a super, you’re going to need 225,000 dollars.

So if we have a look at the purchase costs obviously there are costs to build the property.

That’s all included in there, the cost of building.

So the equity you need is only 81,000. The rest is like stamp duty, etc., in here and the building costs.

The yield, about $2,300 a week or $121,000 per year

Now when we take out the interest on a loan, and here because there’s a superannuation paying it down over time.

So that brings the payments to $44,000.

The rental expenses, now because it’s an SDA, there are costs involved such as 12% collection fee but that’s just not collecting the rent.

It’s also making sure the tenants are happy and living there.

They find the tenants and they make sure everyone’s well organised.

So that including the council rates, maintenance and insurance on the building, that runs out at  about $19,000 a year.

Then the deductions which are just paper entries and depreciation and the loan costs, which you’ve already paid.

So in the end, going into your SMSF account on a monthly basis will be in excess of $3,289  per month or $40,000 a year.

Over a 20 year period, that property will have now been worth around about 2 million dollars.

And you will have pushed in 20 times $40,000, that’s about $800,000 in cash as well.

So you can see this, it’s pretty good.

So each room, and I should say that each bedroom has what’s called a full-size hospital-grade bathroom on-suite.

In both of them you can see there’s an for a pulley system in the ceiling.

In this particular house, there’s a little kitchenette in each room and there’s also a breakout room up here which is vital and a nice living area here in the Alfresco.

Also the overnight accommodation I was talking about.

So each of these bedrooms will generate around $60,000 per year.

So the three-bedroom version will generate around about 180,000 dollars.

So there’s pros and cons.

So let’s have a look at some of the cons.

Of course, it’s specialised building, purpose-built.

There’s no participants, obviously there’s no tenant and because it’s purpose-built, there are higher costs and that’s generating higher income.

The returns, as I said, are higher.

You get bipartisan agreement for 20 years with both sides of parliament.

It’s some really social responsible investment and we have fixed price contract

So once we get settled on the land, we’re away and the yield is linked to CPI and now, thank goodness, it’s SMSF-friendly.

So now by the new loads that are available, we can actually build the manure SMSF for you.

Previously we couldn’t, of course.

So many of the participants moving to your home are living in currently less than ideal situations.

We had our SDA provider explain to us last week that they had a chap in an aged care facility.

For two years he was a vegetarian and for two years he was forced to eat meat.

Totally unacceptable.

So now he’s happy in his own house and his own bedroom, looking forward to it and this is what they call their forever home.

Once they’re in, they don’t want to move out because, as I said, they’ve been living in conditions that just aren’t suitable.

So what’s the structure you need in your SMSF?

Well, you’ve obviously already got your SMSF set up.

On top of that, then you need on the side there is a what they call a bear trust or a holding trust trustee.

And under that is the bear trust. that actually works out to purchase the property on behalf of the SMSF.

And once it’s paid off, the property automatically flows over to the SMSF. Your accountant will take you through that.

So what have we covered so far?

Let’s have a recap.

So what we’ve covered is how much you retirement looks like.

You know, they said how to use your property to turbocharge your SMSF.

What is an SMSF investment and the pros and cons.

We went through those and how one property can add thousands to your SMSF and how you can buy an SMSF now in your SMSF and build it.

So what would your retirement look like if you could put in $3,299 a month for the next 20 years?

Well, let’s have a look at a case study we did with Andrea and Michael. 45 years of age, young family.

They had about $290,000 in their SMSF. Michael’s income was $120,000. Andrea’s was 60.

So combined $180,000 and they had just over 20 years to go to retirement.

So if they provide people going the way they are at the moment, they would end up with around that $944,000 mark.

If we add the investment property,  the NDIS investment property, that would generate a further $3,289 per month for them, which would then have an outcome of an increase to around $1.7 million.

So you can see that’s like over $800,000 in extra income, $787,000 to be exact.

Plus, don’t forget, they still own the property, which is now worth around $2 million.

So can you see this?

On the left, they’ve gone from $944,000 to $1.7 million without putting their hand in their pocket.

No extra contributions.

This is just a return on their investment.

So can you see how this has worked for these people?

And would you like to see if it’ll work for you?

Well, what I’d like to do, or that you’d love to do, is to create your personal SMSF road map.

So what would a road map look like? And what would it be worth to you?

Yeah, these really are worth thousands and thousands of dollars to show you how to turbocharge your SMSF.

Because of the work and time involved, we have to limit it to seven per week.

And what we charge you is investment over just $49.

And I’ll create your personal roadmap for you and show you how you too can turbocharge your SMSF.

What’s inside?

I’ll analyse your existing SMSF.

I’ll do a property investment analysis.

I’ll also do the one to 20-year analysis that you saw there.

And I’ll do the side-by-side SMSF comparison to where you are now, to where you should be in 20 years’ time.

And also, I’ll do a 30-minute online review with you and answer any questions that you may have that pop up.

So how do we get started?

Well, quite simple.

Just click on the link above.

Choose a day, a time to see me and answer the four questions.

And I’ll start work straight away on your turbocharged roadmap.

And don’t forget to invest your $49 along the way as well and all that.

And we’ll get you started to achieve your goal.

All you really need to do is have a desire to improve your current situation.

Then the option is yours to join our team and be happy like our existing clients are or to work, retire or travel.

The choice will be yours.

Look forward to seeing you soon and having a good chat.

This is Phil Allen from Latitude Property.

Until we meet again.

Cheers.

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