Newsletter May 2012

 

INVESTING IN PROPERTY THE NEW WAY

 

Changes to the Superannuation Laws by the Federal Government have impacted the way many Property Investors are now financing and purchasing their Investment Properties.  This is being done via Self Managed Super Funds (SMSF) which are now allowed to borrow money for the purchase of either Residential, Commercial or Industrial Properties.

 

Ben and Kerri are a middle-aged couple who both have been long time employees.  They have 2 kids, and are well established intheproperty market, close to owningtheir own home and have 2 investment properties.  Traditionally, they have financed these Investment Properties in their own names.

 

At a recent review with their Financial Advisor, it was recommended to establish their own SMSF and start to create their retirement wealth through this entity.  The main reasons stated included:

  • “to create wealth for tomorrow”
  • the taxation benefits: SMSF currently pays only a flat 15% tax rate on contributions and earnings
  • It has very minimal effect on their current lifestyle and income as the repayments for the loan are met by the rental income received combined with the Superannuation Contributions by their employers.

 

Ben and Kerri were able to consolidate their Superannuation’s into the one Fund and were very excited to learn they had approximately $200,000.  This amount enabled them to finance the purchase of a $400,000 Residential Investment Property and have sufficient funds remaining to be in the market to look for another Investment Property to increase their portfolio.

 

i are a middle-aged couple who both have been long time employees. They have 2 kids, and are well established in the property market, close to owning their own home and have 2 investment properties. Traditionally, they have financed these Investment Properties in their own names.

At a recent review with their Financial Advisor, it was recommended to establish their own SMSF and start to create their retirement wealth through this entity. The main reasons stated included:
• “to create wealth for tomorrow”
• the taxation benefits: SMSF currently pays only a flat 15% tax rate on contributions and earnings
• It has very minimal effect on their current lifestyle and income as the repayments for the loan are met by the rental income received combined with the Superannuation Contributions by their employers.

Ben and Kerri were able to consolidate their Superannuation’s into the one Fund and were very excited to learn they had approximately $200,000. This amount enabled them to finance the purchase of a $400,000 Residential Investment Property and have sufficient funds remaining to be in the market to look for another Investment Property to increase their portfolio.i are a middle-aged couple who both have been long time employees. They have 2 kids, and are well established in the property market, close to owning their own home and have 2 investment properties. Traditionally, they have financed these Investment Properties in their own names.

At a recent review with their Financial Advisor, it was recommended to establish their own SMSF and start to create their retirement wealth through this entity. The main reasons stated included:
• “to create wealth for tomorrow”
• the taxation benefits: SMSF currently pays only a flat 15% tax rate on contributions and earnings
• It has very minimal effect on their current lifestyle and income as the repayments for the loan are met by the rental income received combined with the Superannuation Contributions by their employers.

Ben and Kerri were able to consolidate their Superannuation’s into the one Fund and were very excited to learn they had approximately $200,000. This amount enabled them to finance the purchase of a $400,000 Residential Investment Property and have sufficient funds remaining to be in the market to look for another Investment Property to increase their portfolio.

 

 

HOW DID YOUR BANK DO?

 

Now thatthereserve bank has announced it’s change on interest rates, what did your bank do?

 

The big four are moving separate totheReserve Bank, and have increased interest rates inthepast whentheReserve Bank has held rates steady. If you have had enough of your bank, why not contact us here at Fraser Financial Services, and see what we can do for you!

 

We have 40 lenders with many different products to suit your needs.

 

Are you happy paying monthly fees?

 

Are you happy with your mortgage provider?

 

Does your current home loan havethefeatures you want?

 

Would like see what else is outthere for your lending needs?

 

If your answer is NO to any of these questions, give us a call, or email terry@ffsqld.com.au  We havethe lenders, andthe expertise to findthe right lender and the solutions to questions.

 

Contact Terry                                                   Ian

0400 853 035                                                  0412 760373

terry@ffsqld.com.au                                         ian@ffsqld.com.au

 

 

THINK FINANCE – THINK FRASER’S…… IT’S WHAT WE DO!

 

Now for a laugh, check out, this seems close to the way banks think!!!!

 

John Clarke and Brian Dawe on banks, quite a giggle

 

Click onthelink to watch

 

http://youtu.be/DyaitC91hEM