SINGLE CONTRACT SDA Property under the NDIS to suit SMSF requirements available
An investment grade SDA property can be an ideal investment vehicle (being risk mitigated and the higher than residential property yields) for your Super.
Having equity/cash available in super allows an investor to purchase an investment property outright.
When one prefers to leverage into the investment, put down a deposit and borrow the balance so that more of the banks money is working hard for your super, the strategy when undertaken correctly has he propensity to be excellent, yet the scenario is different.
For every problem, when your eyes are open there is a solution.
The so called problem is : “if you are going to use borrowings, to leverage into your SDA property investment, one cannot secure land and improve on that land with a build.”
The other problem is that a builder will not build the home and sell you/your SMSF the completed project at the end.
We will introduce you to a service who is deliberately set up to ‘step between the land and build contract and you/your SMSF’.
Meaning they will settle the land and manage the build side, paying the builder their draw downs and enter into a SINGLE CONTRACT with your SMSF, so that once the home is built, the completed single contract is then handed over to you. And it is accepted under SMSF rulings.
Simply explained : properT network source a block of land for you, have a home designed to suit. This firm sign both land and build contract, after which you enter into a single contract with them, put down the required deposit and sit back and wait for completion.
Some advantages to you and your SMSF include
- Super Fund Investment Diversification
- Now you have complete choice of what and where to suit your budget and investment strategy
- Your SMSF can secure a high yielding investment vehicle
- Which is a brand new build
- Removing stress and time required from your end to manage the build and construction draw downs
Investment Advantages to your SMSF
- Ability to leverage into your investment
- offers the opportunity to only invest say 20%, yet achieve returns on 100% of the asset
- opportunity to be able to borrow more than you thought so that you can secure an investment grade SDA property
- Risk mitigated, as property in Australia when held for a period of 7 – 10 years is deemed a low risk profile investment vehicle
- Your income, when you have tenants is guaranteed
- This income is linked to CPI
- If you achieve an income of say $100k pa, link that to just 1.5% CPI over 20 years
- Your initial 20% deposit could be generating an income of an astounding $2 312,366
- How will this positively impact your retirement strategy?