Using Your SMSF To Purchase Property – The Basics

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If your SMSF is looking at purchasing property there are a number of issues that need to be taken under consideration.

To begin with, your SMSF can purchase residential and non residential property. Residential property must be purchased at “arm’s length” – what this means is that you cannot purchase residential property from any member of the SMSF nor from anyone associated with any member of the SMSF. That includes family members.

However non residential property can be purchased for full value from related parties so long as the property is let for business purposes only.

Obviously it makes sense to consult with an expert on all the legal tangles associated with what type of property to purchase and how best to go about it to gather the highest degree of benefits. Your Royale Capital Private Wealth Consultant can of course help guide you through all the complexities.

The process of finding a property to purchase is the same as anyone would look about for property to purchase. Once a property is selected it is important to make sure the property fits the criteria of the fund’s investment strategy. You must make sure that the level of investment in property is in line with the fund’s investment strategy, including diversification of assets, liquidity, and maximisation of member returns in the

fund. Consult with your Royale Capital Private Wealth Consultant to ensure you are proceeding with this properly.

The SMSF then obtains loan approval and the SMSF’s own lawyer/conveyancer acts on the purchase in the ordinary way. The purchase must be in the name of the Property Trustee. The Property Trustee should be an arms length trustee from the SMSF Trustee and the members of the SMSF. This is to ensure that the transaction is not a facade, and the related party and in house asset rules are complied with.

The SMSF then pays the deposit, the balance purchase money, the legal costs and stamp duty. Once the purchase is completed the Property Trustee mortgages the property to the lender. The SMSF then manages the property asset the same as with any real estate investment.

It is important to understand that no member of the SMSF can occupy the property. If a member of the SMSF were to occupy the property the “in-house asset rule” would be breached. The in-house asset rule dictates that SMSF owners should not directly benefit from the money set aside for their superannuation until they reach retirement age. However, the SMSF can buy a property that the investor intends to live in after retirement. This is possible if you transfer the property from your super fund to yourself after you retire.

Making sure this is done properly and does not violate the “in house asset rule” is another area where your Royale Capital Private Wealth Consultant can help you skirt potential legal troubles.

To learn more about all the financial services and educational programs offered by Royale Capital and our Private Wealth program, visit our website at http://www.royalecapital.com.au/ or give one of our expert consultants a call at 1300 924 463.

uROK: Dream Your Life….Live Your Dream

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Dream your life, and then live your dream.

Sounds easy right?

Well it can be. One of the perks of becoming a Royale Capital Private Wealth Member is that we have secured a special offer from Sari Mustonen-Kirk, the founder of uROk® and author of “The uROK 33 Day Challenge”.

The uROK 33 Day Challenge is special program designed to help you take a holistic approach to living the life you have always dreamed about.

This life planning/management and goal achievement DIY program used with the expert financial services offered by Royal Capital can help you reach new heights in all areas of your personal life including health, wealth, love and work. Most of all, this program can help you improve yourself – and there’s nothing worth more than that.

Sari has over 20 years professional experience working for some of Australia’s largest financial institutions. In her own words she has succeeded in “Placing positive messages into the world and has developed leading edge business and personal growth tools to bring about meaningful and sustainable change”.

Sari owns the Strategic Advisory Consultancy company Big Picture Management (BPM). Her podcast boosts a global subscriber base of more than one million listeners. She is consistently rated in the top 3 in the world in motivation and self help. Sari is also co-author of the best selling trading book, “Bullseye – Top Trader Thinking”.

The purpose of the uROk 33 Day Challenge is to help you learn how to focus your thoughts, words and actions toward those things that serve you in your journey toward becoming the ideal you.

Now you may argue that just thinking about something isn’t going to make it happen – and you’d be right. But thought precedes action. If you are focused only on your problems – whether past or present or both, then you are not focused on how to move forward and how to make your life better so you can put those problems behind you. In effect, you are stuck in place, mired in your troubles.

 

In one of her blog postings Sari writes how can one possibly focus on a reality of being wealthy when bills are pouring in? Her answer is quite simple: is focusing on the amount of your debts going to move you to a better place, or is turning your focus and getting your creativity firing toward saving more and making more money a more constructive approach? The choice is obvious. By focusing on the positive, by focusing on how to move forward you can then make the choice to take action. In other words, focus leads to action and action leads to you achieving a better reality.

To learn more about Sari and the uROK program, you can download the first 33 pages of Sari’s  “The uROK 33 Day Challenge” book for free at the Royale Capital website http://www.royalecapital.com.au/urok.html

To learn more about all the services offered by Royal Capital and our Private Wealth program, visit our website at http://www.royalecapital.com.au/ or give one of our expert consultants a call at 1300 924 463.

Royal Capital – Private Wealth Members and the Importance of Education

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At Royal Capital we believe in the power of education. We believe education is the most important component of a trader’s success and we are fervent about passing this expert knowledge to people with a genuine interest in their financial future – our clients!

When someone becomes a Royale Capital Private Wealth Member they are given access to a wealth of education. The more educated you are, the better choices you will make. This has been borne out by numerous studies over the years.

In fact over 80% of people trading shares fail to maximise profits from stocks they select. They sell profitable trades early to make up for losses on stocks they continue to hold in the hope of a recovery. Many people who trade rely on “gut feelings” rather than making a decision firmly based in knowledge and an understanding of the market. Royal Capital believes that emotion should never be permitted to cloud a traders’ judgement. Every decision must be based on knowledge and that is where our education services come in.

What we seek to achieve with our training resources is to make sure that you – our client – learns how to adopt the right trading mentality and possess a wealth of knowledge to support your decision making process.

Some of the educational opportunities we offer at Royal Capital include:

  • 2 day workshops at your home town or nearest capital city
  • Online members portal ( reports/recommendations/information)
  • Online webinars: tailored to suit
  • One on One Mentoring
  • Advice
  • Technical analysis
  • Fundamental analysis
  • Global markets
  • CFD’S / Futures / Options / Shares / FX
  • Real Live Trading
  • Trading platforms
  • ABC’s of charting

We also offer tailor made training sessions. If you have a group interested in a particular aspect of trading we can develop a training program specific to that subject.

For more information on our training programs please visit our website.