An Investment Property Strategy takes into account your individual situation, cashflows, equity levels, ages, income streams, and establishes clarity on potential goal objectives to format a step by step plan on building your property portfolio. Everyone starts from a different position, has different goals and objectives, and has various levels of comfort with investment plans. This is why your Investment Property Strategy is yours and yours alone. You should not just adopt another persons strategy without all the components being considered.

A Property Investment Accountant ensures your fund complies with Australian laws, including ATO and if purchasing in a SMSF, the Superannuation Industry (Supervision) Act (SISA) regulations. They also help you optimise tax strategies, manage lodgements, and provide expert advice tailored to Australia’s unique environment. Further than this they also assist you to build your property portfolio, by maximising your structure and entities that you acquire your property ownership.

Tax Depreciation laws have changed in Australia, with only New Property being allowed to claim this benefit. This makes a vast difference in how much you actually pay for you property each week. If a Tax Depreciation Claim in Year 1 was say $15,000 to $18,000, this claim is substantial at reducing your taxable income. These funds can either be claimed in your annual tax claim or if a PAYG, you can claim it by having your Tax reduced in each pay.

Negative Gearing is a term that indicates a properties holding costs, such as interest, rates, property management, insurances, owners corporation and any maintenance, has resulted in more funds going out than you have received in rental income.
This can be an artificial negative geared result, if the use of a "Paper Cost" such as Tax Depreciation is the causing effect or a real negative geared result, by a loss occurring each year. This need to examined carefully as the ability to hold property from the longer term, to benefit from the Capital Growth of the property needs to considerably outweigh any holding costs.

To purchase and hold property, there may be times when unexpected costs arise, the property maybe vacant, with tenancy vacancy and it in these times that the importance of having a Buffer or Reserve Funds base is vital. When quality investment property has typically grown at 7% to 8% or more on average for the last 50 plus years in Australia. The Buffer or Reserve Funds cover any lean times and enable the ability to obtain the full benefit of the capital and rental growth. A lesser amount of funds is typically required for new property.

The Investment Property should always be maintained to attract and achieve the best rental return possible for you as an investor. The maintenance is the responsibility of the property owner, in this case the investor. In saying that all properties are not equal, with new property typically not needing much in the way of maintenance for the first 7 to 10 years. In this time the typical rental has increased substantially and these added rental funds typically more than covers maintenance costs. On established property you can incur maintenance in year one, which means it's more likely to need to be covered by the investor. This is where the Buffer or Reserve Funds assist in covering these costs.

As an SMSF trustee in Australia, you are responsible for:

• Ensuring your fund meets the sole purpose test (providing for retirement benefits).

• Managing investments according to the fund's strategy.

• Keeping accurate records and lodging annual returns.

• Ensuring compliance with superannuation and taxation laws.

Yes, your SMSF can borrow money under a Limited Recourse Borrowing Arrangement (LRBA) to invest in property. This must comply with strict ATO rules, and the property must meet the sole purpose test. Professional advice is critical to ensure compliance and assess potential risks.

While there is no legal minimum, the Australian Securities and Investments Commission (ASIC) suggests a minimum balance of $200,000 to make an SMSF cost-effective compared to other superannuation options.

To set up an SMSF, you’ll need to:

1. Establish a trust and trust deed.

2. Register the fund with the ATO.

3. Obtain an Australian Business Number (ABN) and Tax File Number (TFN).

4. Open a bank account for the fund.

5. Create an investment strategy compliant with Australian laws. A professional SMSF accountant can simplify and manage this process for you.

A non-compliant SMSF may face penalties, hefty fines, or loss of its concessional tax treatment. The ATO may impose administrative penalties on trustees or disqualify the SMSF. It’s crucial to seek professional guidance immediately to rectify any compliance issues.

Yes, SMSFs can invest in residential or commercial property, provided the property meets the sole purpose test and other compliance requirements.

Every SMSF in Australia must:

• Lodge an annual tax return with the ATO.

• Undergo an independent audit by an approved SMSF auditor.

• Ensure ongoing compliance with ATO regulations and the fund’s investment strategy.

Find SMSF Accountants offers comprehensive SMSF services tailored to Australian trustees, including:

• SMSF setup and registration with the ATO.

• Tax planning and annual return preparation.

• Independent auditing services.

• Investment strategy advice.

• Retirement and estate planning. Our team ensures your fund remains compliant, cost-effective, and aligned with your financial goals.