Case Study 1

Michael is 35 years old and has been working in the IT Industry for a number of years. He currently has two negatively geared investment properties and is confident of his ability to find similar properties capable of generating capital growth over the longer term. His other assets include a home valued at $700,000 (with $200,000 owing on it) and he has $150,000 in super. One of the directors in Michael’s office recently borrowed to buy a property in his super fund. Michael has found a residential investment property he would like to purchase and wants to know if he can use his superannuation monies to buy it.

Case Study 2

At the age of fifty, Jenny has downsized her family home as the last of her children has moved out. Following the transaction, she has $200,000 remaining and would like to purchase an investment property as part of her long term retirement plan. Her current super balance is $100,000 as she was out of the work force for an extended period of time raising her children. She is a self-employed physiotherapist earning $130,000 per annum and expects to work up to age sixty-five.

Jenny has found an investment property she would like to buy valued at $500,000. It is anticipated that the net rental return will be 4% and capital growth will be 5%. A colleague has just purchased a property in his super fund and she would like to know if there is any benefit in her doing the same.

Case study 3

John is 45 years old and the proprietor of a successful small business. He purchased his business premises a few years ago for $450,000; it is currently valued at $550,000. The debt on the property is $200,000 and the rental proceeds are now greater than the deductions. His personal assets include a home valued at $800,000 (with $250,000 owing on it) and he has $350,000 in super. John feels that he is not getting ahead as he has owed the same amount on his home for three years now. How can his assets be restructured to improve his current position and help him achieve his goal of retiring at age 60?