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INVESTING WITH SMSF

It’s possible to outperform traditional industry super funds by using the vehicle of property development within a self-managed super fund.

On this page, we demonstrate a SMSF property investment example to show you what can be achieved.

A common method for investors to utilise their superannuation to invest in property is to utilise a self-managed super fund (SMSF) and a Unit Trust. Most of our property developments are structured as Unit Trusts, which means that investors with a SMSF may invest in our investment opportunities.

However, there are some legislative restrictions and requirements in place in regards to SMSF investing. To ensure that your SMSF investment is compliant with ATO regulations, we recommend engaging the services of licensed professionals to assist you if you have not already done so.

Benefits of SMSF Property Investing

When handled properly, a self-managed super fund is capable of outperforming the traditional industry super funds that many of us are investing with. Here are some performance comparisons with the largest Australian superannuation funds.

  • Our property development investments typically offer an annualised return of 13-16% p.a.
  • AMP Superannuation has delivered a return of 5.27% p.a. with their Accelerator Personal Superannuation Plan over the last ten years.
  • AustralianSuper has delivered a return of 8.67% p.a. with their balanced premix over the last ten years.
  • Retail Employees Superannuation Trust (REST) has delivered a return of 8.95% p.a.  with their core strategy over the last ten years.
  • Colonial Mutual Supernnuation has delivered a return of 5.63% p.a. with their balanced fund over the last ten years.

SMSF Property Investment Example

Below is an example of the returns you would receive from investing in one of our developments via an SMSF compared to the returns of investing in an industry superfund.

PROPERTY DEVELOPMENT VIA SMSF
15% per annum (annualised)
24 Month Investment Term
$250,000 investment
1 %
RETURN ON INVESTMENT
$ 1
Total profit
INDUSTRY SUPERFUND
8% per annum
24 Month Investment Term
$250,000 investment
1 %
FIXED RETURN ON INVESTMENT
$ 1
Total profit

Creating an SMSF

We recommend reading the instructions from the Australian Tax Office on how to set up an SMSF.

We can also refer you to financial planners who have worked with past clients to create SMSFs. Simply contact us.

Lion Property Group is NOT a financial adviser and is not qualified to provide personalised financial advice. The information on this webpage is general is nature and does not take into account your personal situation or circumstances. We highly recommend consulting a licensed and qualified financial planner to assist you with the creation and management of a self-managed super fund.

Take our quick eligibility test to see if we are good fit for you.

Wealth Creation - Lion Property Group

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