Kevin and Annette realised that retirement wasn’t too far away, given the fact that they still had a $350, 000 mortgage and no investment strategy, the future looked bleak.

cpl2Kevin, an office manager in Brisbane CBD and Annette a recpetionosit at a medical practice in South Brisbane, were desperate to do something because they were struggling to keep up with their debt

Their accountant suggested that property investment was the best for their situation and referred them to APPA where their finance specialists came up with a detailed yet straightforward strategy.

a. minimise their tax and current mortgage debt; and

b. create a retirement plan to provide an income in retirement.

Step 1.

Kevin and Annette conducted a two hour strategy session with APPA’s accountant, financial planner and finance strategist to assess their financial situation and implement a plan to address their issues.

Step 2.

Based on the plan, Kevin and Annette decided to use their superannuation funds as a deposit to purchase two investment properties. This option not only leveraged their current assets to over $700 000, it offered a solid yield, which would underpin their retirement income.

Step 3.

A property that suited their needs was secured and the setup of the finance, trust and trustees were completed. The sale was completed and tenants selected.

The investment Kevin and Annette selected suited their goals 100%. By buying a property from a distressed seller under market value, they were able to achieve an immediate profit of $25,000. The investment offered a strong yield which ultimately ensured that the rent and their super contributions made it possible to pay the debt off in 11 years.

The initial investment of $5000 to set up the plan and a self-managed superannuation fund was deducted from their superannuation meaning that Kevin and Annette didn’t incur any out of pocket fees.

This simple investment has ensured that Kevin and Annette have a retirement nest egg of $900,000 in property, plus $220,000 in Superannuation and a weekly income of $700 tax free.

The bonus is, now the can afford to do things like go on yearly family vacations and build their wealth towards retirement.


Many people don’t realise the potential to use their own superannuation to buy a property using their own Self-Managed Super Fund (SMFS).

By using this avenue for significant wealth creation, clients can borrow using their super fund balance as leverage (current LVR rates around 60-70%). That is, if you have $100,000 in superannuation, you can use those funds to leverage approximately a $300,000 purchase.

When purchased, bearing in mind it must be an “arms-length” transaction (not purchased from yourself or any related parties), your annual superannuation contributions can pick up any shortfall in costs related to the property. Any profits the property provides are put back in to the super fund at a maximum of 15%.

Once you fill the appropriate retirement criteria, any rent received from the property is tax free, and in the event of a sale, any capital gain made is tax free.

The ability to borrow using your self-managed super fund has only been around of a number of years, people are starting to take advantage of this as they find that property can provide a more secure investment than trading the volatile share market.

It is important that you use an experienced self-managed super fund manager as well as a mortgage broker who knows what they are doing. Our team can provide this for you to streamline the whole process.

In fact, on some of the purchasers through Portfolio Property Investments, we will even pay the fund manager the appropriate set up costs for you to have a Self-Managed super fund that not only earns you rent but gets a high return which can be up to three times the value of your super contributions current earnings.

Q.     But my super is with a fund manager, can I use it?

A. Simply, Yes. You need to set the appropriate structure up with a qualified and experienced Self-Managed Super Fund accountant which we can arrange.

Q.     I already earn money through my superannuation account, why change now?

A. Let’s say you have $150,000 in superannuation. Over a ten year average, super funds have earned around 6%. That’s a $9,000 return per annum on your super fund.

Now let’s say you used that amount to fund a property acquisition. We will use an example of buying a 3 bedroom duplex unit in Emerald QLD at $370,000.

You have used $111,000 for the deposit of 30% plus $15,000 of purchase costs including stamp duty etc. The unit rents for $500 per week, giving you a net return just over 7% ($26,000 per year). Interest plus rates and fees will take most of that, however, you have now have an asset which is costing you nothing to hold and is growing on the Australian average of 8-10%.

Let’s be conservative and say it only grows 8% pa, instead of a return of 6% on $150,000, you are now earning approximately 8-10% on $370,000. That’s a difference of over $20,000 per year in net growth for your superfund.

As long as you have a family income of at least $90,000, and $150,000 in superannuation or savings or equity of at least $40,000 you could get started today.

If you meet the basic requirements, this little-understood option could start you on the road to property investment:

Yes, I would like to be debt free and financially secure in my retirement.

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