SMSF is all about being in charge of your financial goals

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Your Self Managed Super Fund or SMSF is the vehicle you use to make a financial plan for your retirement. Naturally you want your money to be invested in opportunities that offer a strong return and offer stability and value over the long term.

The whole reason a person goes for a SMSF rather than relying on an existing industry super fund is because you want to take control of your finances. Instead of paying a 3rd party fund manager for making stock picks astute Australians set up their own self managed super fund to make investments based upon their own judgement of what is best.

Usually the investment options for SMSF include Stocks and Bonds or Property

While stocks can be often volatile as well as given the unique niche Australia has in the global economy prone to factors that are beyond control. Real Estate on the other hand has been the bedrock of wealth creation for generations in Australia.

Real estate investing using an SMSF typically involves buying an investment property using limited recourse borrowing. There are a few issues with buying an investment property using your SMSF. The government often tinkers with SMSF rules which can mean the assumptions under which you bought the investment property can change leading to a divergence of outcome. The second issue is borrowing and leverage is limited in terms of both the LVRs as well as the fact that typical interest rates are higher than what you would get in a normal investment property loan.

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Buying property with the intention of getting a long term gain is dependent on the state of the property cycle

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The third issue is more structural. If you buy property at the peak of the market, you can often face long periods of stagnation or even a downturn. Given the boom in parts of Australia including Melbourne and Sydney have experienced in the last few years as well as the potential for interest rates increase, buying a property right now is no longer a sure shot winner as it was a few years back.

When you buy for capital gain your fate is tied to the market cycle and you rise and fall with the tide.

What if there was a way to create your own capital growth

As an SMSF investor you want to have more control and say rather than going up and down with the tide. How about participating in adding value to a property so that using your SMSF money you can beat the property market cycle. Property development involves the process of adding value to an existing site, either in the form of a renovation or building something new that will generate profits.

However there are no opportunities in the market for an SMSF investor to invest in a passive way in property development opportunities the way they can invest in public companies on the stock market.


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Development IPOs

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We have created cost effective legal structures and seamless technology that allow a developer to raise money for their development projects from the market through investment offer documents that carry the highest level of disclosures. Each offer document will detail in a clear concise and effective manner the details of the development project and what the money will be used for.

Offerings Lodged and reviewed by Securities Regulators

This offer document or a Prospectus is the same document a public company issues when they list on the ASX (although our offers don't go for listing). Each offer is duly lodged with ASIC who is the securities regulator in Australia and is reviewed to ensure it meets the standards of disclosure required for public offerings.

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Regular updates

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The Developer is required to and will provide you regular updates around the progress of the project as part of their continuous disclosure obligations to investors.

Independent audits

Beyond that each offer also has to go through public audits giving you as an investor the additional peace of mind that the money will be used for what it was said it will be used.

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Invest with small or large amounts in the opportunities of your choice

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Estate Baron is a marketplace where a number of these Development IPOs are listed. All details related to an offer will be provided to you and you can review them yourself or with your own advisers before you make a decision. Once an investment is made you will be provided regular updates regarding the progress of the project.

No debt borne by you and strong target returns on offer

The best thing is you are taking on no debt, and yet you can expect anywhere between 10-20% typical annual return. This will vary based on the project, the stage, who is behind it etc, but by becoming an equity investor in these deals you are able to keep a portion of the value created for yourself in the form of the profits.

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You get paid the target return before the developer gets paid and any debt liabilities to the bank are borne solely by the developer.

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A new investment class which gives small investors to participate in property development.

As an SMSF investor you are all about control, choice and initiative. Development IPOs on Estate Baron are the perfect investment solution for an astute SMSF investor.

As always any content here is not meant to provide you financial advice but to educate you around options. All investments carry risk, use your own discretion and always review the relevant investment offer documents.

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