Self Managed SuperFund (SMSF)
AS SEEN ON
Self Managed Superfund Investors
Building your SMSF with property is popular yet at times challenging…traditional property investment methods are especially painful right now…
- Many house and land packages are negatively geared with low growth rates.
- Small developments like duplexes have become increasingly complicated with limited cost efficiencies, volatile build costs and ever increasing associated professional services requiring upwards of 1M to start.
- Company share or partnership models offer you little control over your own money, and fewer liquidity options facilitating your ability to exit when you need cash.
Conventional property investments typically require taking out loans with higher interest rates that can reduce your returns, introduce more uncertainty, and ultimately stall your financial goals.
Selling these properties can also be problematic if your SMSF needs cash quickly…
While property is generally considered a well understood and lower risk investment for an SMSF, all of these factors contribute to increasing risk.
This is why we’ve been implementing ‘fractional property’ investment strategies in SMSF portfolios that help SMSF investors take advantage of the benefits of property investment while minimising many of these problems. We view this investment strategy positively due to enhanced control, increase liquidity and ability to diversify more easily across various property investments enabling SMSF investors to achieve increased returns and the much sought after flexibility to accumulate wealth, as well as to buy or sell holdings as desired.
Investing in fractional property allows you to invest your SMSF in units that reflect equity in as many properties as you like. We will assist you in setting up your fractional property investment account, allowing you to diversify your funds in multiple locations and property types with the freedom to adjust your portfolio at any time to suit your needs.
You can sell up in days or weeks instead of months or even years, with no penalty and at much less cost.
Investing in fractional property investments also avoids many of the issues and strict regulations that govern SMSF property ownership, allowing you to benefit from the rental income and equity growth of a property.
- You have control of your portion of the properties and the entitlements that come with your participation. All agreements are documented and signed and carried out across a secure ASIC regulated investment platform and held by a third party bank owned custodian to protect your investments.
- Get involved with multi-residential projects that enjoy greater economies of scale efficiency and returns that used to be exclusive to big development companies only
- A lower investment requirement to invest in property, many choose to start with portfolios of a minimum $50,000
- You are not personally exposed to any liability if leverage is used to finance a project or property acquisition - simply invest alongside your appetite and goals
- None of your time is spent on tenant screening, property management, legal complexities or repairs
- Sell and exit far faster than traditional property sales processes
- Enjoy a far greater diversification of opportunities, allowing you to spread your investment geographically and in different property types to mitigate risk from market changes.
Here's brief example of a project investors can take part in:
– Cash Investment raised: $2.5 million (acquisition cost and renovation raised from multiple investors)
– Loan: $2 million (facilitate acquisition and renovation, done with a far better deal through our team)
= Total cost: $4.5 million (investment + loan)
– Selling price: $6 million (due to high demand and exceeding market expectations)
– Profit after paying off loan and costs: $1.5 million (split between investors proportionate to their investment amount)
Your next steps
If you’re ready to learn more about how we work with SMSF and Trust investors, to add more flexibility with less headaches and no personal mortgage liability, click below to get a callback. Our friendly team will be in touch soon to walk through how it all works and help you decide whether our approach is a good match for you.
*This is an advertisement and is not to be construed as an offer. Kelkap can provide general advice only. Fill in your details to be sent a copy of the Product Disclosure Statement (PDS) which sets out the details of this investment opportunity, including the costs and risks. Kelkap Pty Ltd, Corporate Authorised Representative No.001307532.
Australian Property Market
Property Developments
We actively engage in property development projects, leveraging our expertise to create value through strategic real estate investments. Our record in property development speaks to our commitment to maximizing returns in this asset class.
Debt Funds
Our debt funds are designed to deliver stable and consistent income to investors. With a focus on risk...
Book Your Consultation Now
Take the first step towards a secure financial future.
Assess Your Portfolio's Potential
Book a no obligation consultation to see if our services can assist you with improving your portfolio performance.
‘Execute with conviction’
Kelkap Pty Ltd ABN 69 672 848 985 is a corporate authorised representative (CAR) No. 001307532 of Lemessurier Securities PTY LTD ABN 43 111 931 849, AFSL 296877. Kelkap does not provide personal advice, any information provided is general only and may not be appropriate for you. None of your objectives, financial situation or needs have been taken into account. We strongly recommend you speak to financial adviser before acting upon any investment. You should also obtain a copy of the product disclosure statement (PDS) before making any decision about whether to acquire any products. To read information about our services, including fees, complaints, or general information you can access our up-to-date Financial Services Guide (FSG) here, or you can request a copy from any Kelkap representative. See a copy of our privacy statement here.