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M IDAS P ROPERTY S OLUTIONS Midas Property Solutions is a boutique real estate agency with a property investment knowledge and expertise helping Australians and International investors to generate wealth through strategic property investments. Midas Property Solutions offers complete strategic property investment and financial advisory service specialising in the purchase, sale, and management of real estate, wealth creation through the property, and financial solutions. RECENT SALES For the most recent sales and construction updates visit our Facebook Page Untitled Untitled4 Untitled1 Untitled 1/4 DAWESVILLE, WA DUAL INCOME INVESTMENT (Dawesville, WA 6211) Sold Price: $674,040 Sold Date: 16 May 2023 ​ Lot 1202 Nyabing Pass, Dawesville, WA 6211 ​ Weekly Rental Income: $840 Unit 1 ( 3 Bedroom) - $490pw Unit 2 ( 2 Bedroom) - $350pw Expected Rental Yield: 6.48% LOOKING FOR DUAL INCOME INVESTMENT Facade front Lot 5_1_60_Maranoa St_003 Lot 5_2_60_Maranoa St_004 Facade front 1/14 LOGAN RESERVE, QLD DUAL INCOME INVESTMENT (Logan Reserve, QLD 4133) Sold Price: $810,062 Sold Date: 03 May 2023 ​ Lot 56 Loganview Estate, Logan Reserve, Qld 4133 Weekly Rental Income: $880 Unit 1( 4 Bedroom) - $500pw Unit 2 ( 2 Bedroom) - $380pw Expected Rental Yield: 5.65% INTERESTED IN HIGH YIELD INVESTMENT 1 House Front 2 Patio 7 Ensuite 1 House Front 1/12 EAGLEBY, QLD SMSF - DUAL INCOME INVESTMENT (Eagleby QLD 4207) - YIELD 6.66% ​ Property Rented out on the 12 July 2020 Weekly Rental Income: $640 Unit 1 ( 3 Bedroom) - $340pw Unit 2 ( 2 Bedroom) - $290pw Rental Yield: 6.66% LOOKING FOR DUAL INCOME INVESTMENT LOGANLEA, QLD DUAL INCOME INVESTMENT (Loganlea, QLD 4131) - YIELD 6.52% Property Rented out on the 29th May 2020 Turnkey Purchase Price: $550,000 Weekly Rental Income: $690 Unit 1 ( 3 Bedroom) - $380pw Unit 2 ( 2 Bedroom) - $310pw Rental Yield: 6.52% INTERESTED IN HIGH YIELD INVESTMENT 1 House Front 2 Patio (1) 8 Bathroom 1 House Front 1/15 1 House Front 3 Kitchen (1) 1 House Front (2) 1 House Front 1/14 KINGSTON, QLD DUAL INCOME INVESTMENT (Kingston QLD 4114) - YIELD 6.48% ​ Property Rented out on the 26th March 2020 Turnkey Purchase Price: $522,000 Weekly Rental Income: $650 Unit 1 ( 3 Bedroom) - $350pw Unit 2 ( 2 Bedroom) - $300pw Rental Yield: 6.48% FIND OUT MORE ABOUT DUAL OCCUPANCY INVESTMENT WATERFORD WEST, QLD DUAL INCOME INVESTMENT (Waterford West QLD 4133) - YIELD 7.66% ​ Property Rented out on the 12th of February 2022 Weekly Rental Income: $780 Turnkey Purchase Price: $529,500 Purchase Date: 27-01-2021 Current Market Value: $690,000 - $710,000 Unit 1 ( 3 Bedroom) - $430pw Unit 2 ( 2 Bedroom) - $350pw Rental Yield: 7.66% LOOKING FOR DUAL INCOME INVESTMENT A_13b Mark Lane_001 1 House Front 8 Bathroom A_13b Mark Lane_001 1/16 1_34 Josephine Court_001 Facade 7 Ensuite 1_34 Josephine Court_001 1/14 Logan Reserve, QLD DUAL INCOME INVESTMENT (Logan Reserve QLD 4133) - YIELD 7.80% ​ Property Rented out on the 1st of April 2022 Turnkey Purchase Price: $533,000 Purchase Date: 05-03-2021 Current Market Value: $690,000 - $710,000 Weekly Rental Income: $800 Unit 1 ( 4 Bedroom) - $440pw Unit 2 ( 2 Bedroom) - $360pw Rental Yield:7.80% FIND OUT MORE ABOUT DUAL OCCUPANCY INVESTMENT LEARN MORE ABOUT DUAL OCCUPANCY Building a dual occupancy property has advantages for people at all stages of the real estate cycle. Dual Living designs provide two separate living spaces under one roof, offering privacy, comfort, and style. The main factor is the ability to maximise the potential of one block of land. Essentially this means improved cash flow and reduced maintenance costs. A smart decision for investors looking to grow their property portfolio with exceptional returns, delivering a superior cash flow, and therefore allows an investor the opportunity to pay off their mortgage sooner. Find Out More About Dual Occupancy Investments DUAL OCCUPANCY A dual occupancy property has two separate dwellings on a single title. There’s only one set of rates and no body corporate fees to consider. Generally it’ll be attached by a common wall, but can also be detached. Both residences will have separate internal entrances and can be leased out to different parties (depending on the local Council rules). DUAL INCOME INVESTMENTS Dual income investments enable investors to derive two incomes from one property via two separate rental agreements. With an average rental return of over 6% per annum, such investments are very much cash positive. Dual Occupancy Investment Properties have become a very popular investment option for investors and have been in high demand. ​ FINANCE ​ Successful property investors know the importance of correctly structured finance. Getting quality advice from experienced industry professionals is the key to successfully building an investment property portfolio. ​ We have built a strong reputation as an outstanding mortgage brokerage firm, serving the lending needs of real estate professionals, builders, and individual homebuyers SMSF ​ Having an SMSF is usually all about having greater control over your super. Did you know that you can use your superannuation fund to buy a long-term residential investment property. You may be unsure of where to start? ​ Investing in property through a self-managed super fund (SMSF) has grown in popularity in recent years. How do you know which property type is suitable for your SMSF? DEBT REDUCTION PLAN Many financial plans require investors to get into DEBT. ​ However, a plan is not complete if it doesn’t address how the investor will eventually repay their DEBT at some point. ​ How much debt is safe to take into retirement? How are you going to repay all your debt before you retire? ​ ​ ​ ​ ​ EDUCATIONAL ​ Learn how to build wealth through a strategic approach to property investment and see clearly how different strategies can impact your financial goals. Our clients benefit from ongoing mentoring and support for the life of the investment. Get a strategy first before you invest. ​ ​ ​ ​ ​ testimonials WHAT PEOPLE SAY “Thank you very much for all your help and expertise in entering the investment property market so much easier and we look forward to doing business with you again in the future”. Alex & Mylene Pemulwuy NSW CONTACT

SHOWCASING OUR RECENT SALES We understand residential property investment and the long-term financial benefits that owning a residential investment property can bring to the lives of everyday Australians. ​ Midas home and land packages are delivered as complete turn-key solutions with just the right inclusions to offer the perfect balance between quality, value, and durability. ​ For the most recent sales and construction updates please visit our Facebook Page LOGAN RESERVE , QLD DUAL INCOME INVESTMENT (Logan Reserve, QLD 4133) Sold Price: $810,062 Sold Date: 03 May 2023 ​ Lot 56 Loganview Estate, Logan Reserve, Qld 4133 Weekly Rental Income: $880 Unit 1( 4 Bedroom) - $500pw Unit 2 ( 2 Bedroom) - $380pw Expected Rental Yield: 5.65% FIND OUT MORE DAWESVILLE, WA DUAL INCOME INVESTMENT ( Dawesville, WA 6211) Sold Price: $674,040 Sold Date: 16 May 2023 ​ Lot 1202 Nyabing Pass, Dawesville, WA 6211 ​ Weekly Rental Income: $840 Unit 1 ( 3 Bedroom) - $490pw Unit 2 ( 2 Bedroom) - $350pw Expected Rental Yield: 6.48% FIND OUT MORE BAHRS SCRUB , QLD DUAL INCOME INVESTMENT (BAHRS SCRUB, QLD 4207) - YIELD 6.41% Lot 122, 43 Herbst Drive, Bahrs Scrub QLD 4207 Property Rented out on the 31st March 2020 Weekly Rental Income: $660 Unit 1( 3 Bedroom) - $360pw Unit 2 ( 2 Bedroom) - $300pw Rental Yield: 6.41% FIND OUT MORE MORAYFIELD, QLD SMSF - DUAL INCOME INVESTMENT (Morayfield QLD 4506) - YIELD 7.12% ​ Lot 25, 17 Jack Street, Morayfield QLD 4506 Property Rented out on the 19th May 2020 ​ Weekly Rental Income: $620 Unit 1 ( 4 Bedroom) - $350pw Unit 2 ( 1 Bedroom) - $270pw Rental Yield: 7.12% FIND OUT MORE PARK RIDGE , QLD DUAL INCOME INVESTMENT (PARK RIDGE, QLD 4125) - YIELD 6.39% 23 Farmer Place, Park Ridge QLD 4125 Property Rented out on the 18th June 2020 ​ Weekly Rental Income: $670 Unit 1 ( 3 Bedroom) - $370pw Unit 2 ( 2 Bedroom) - $300pw ​ Rental Yield: 6.39% FIND OUT MORE BEENLEIGH, QLD DUAL INCOME INVESTMENT (Beenleigh QLD 4207) - YIELD 6.45% ​ 91 Holmview Road, Beenleigh, Qld 4207 Property Rented out on the 01 February 2020 ​ Weekly Rental Income: $680 Unit 1 ( 3 Bedroom) - $370pw Unit 2 ( 2 Bedroom) - $310pw Rental Yield: 6.45% FIND OUT MORE KINGSTON , QLD DUAL INCOME INVESTMENT (KINGSTON, QLD 4114) - YIELD 6.38% Lot 15, 8 Kyloe Court, Kingston QLD 4114 Property Rented out on the 25th January 2020 ​ Weekly Rental Income: $640 Unit 1 ( 3 Bedroom) - $320pw Unit 2 ( 2 Bedroom) - $290pw ​ Rental Yield: 6.38% FIND OUT MORE MORAYFIELD, QLD DUAL INCOME INVESTMENT (Morayfield QLD 4506) - YIELD 6.84% ​ 17 Awoonga Crescent, Morayfield QLD 4506 Property Rented out on the 22nd December 2019 ​ Weekly Rental Income: $680 Unit 1 ( 3 Bedroom) - $365pw Unit 2 ( 2 Bedroom) - $315pw Rental Yield: 6.84% FIND OUT MORE Find Out More About Dual Occupancy Investments

ABOUT US Midas Property Solutions is a boutique real estate agency with a property investment knowledge and expertise helping Australians and International investors to generate wealth through strategic property investments. ​ Midas Property Solutions offers complete strategic property investment and financial advisory service specialising in the purchase, sale, and management of the Real Estate, wealth creation through the property, and financial solutions. ​ Midas offer services to large reputable Real Estate businesses such as Ray White, Remax, Professionals as well as Mortgage Businesses, Accountants and Financial Planning Companies to assist their clients with investment decisions and ongoing support. ​ We’ve built our business on the principle of delivering individualised service with the highest ethical standards and professionalism. ​ Midas strives to provide clients with a complete property investment advisory service offering guidance, education, communication and ongoing support. ​ We deal directly with Australia’s leading property developers and have been involved with a wide range of activities and processes with Residential Development Projects. ​ Financial education and money management skills are not taught at school so we are committed to educating our clients understanding the Importance of money management, debt reduction and effective finance structure, during the investment process. ​ To ensure implemented strategies are followed through Midas offer ongoing mentoring assistance to help keep our clients in line with their investment goals. MISSION STATEMENT “We’re passionate about providing our clients with outstanding quality services to build their financial independence through property investment.” MIDAS SERVICES ​ Our services include: ​ Residential Listings and Selling, Property Management, Off the Plan Projects, House and Land packages, Design and Construct, Dual Occupancy and Duplex Homes, Valuations, Property Investment Services, Depreciation Schedules, Residential Finance Commercial Finance, SMSF Finance Conveyancing MEET DEJAN ​ Dejan Bozanic is the Principal and Founder of Midas Property Solutions a leading investment, education, and mentoring company for real estate investors. Dejan is Licensed Real Estate Agent and his investment property market knowledge with a professional service and expertise is second to none. Dejan is passionate about strategic property investment and now helps his clients to move forward in their path to financial freedom. Dejan is also the Principal and Founder of Midas Mortgage Solutions with experience in the finance industry for over 20 years and holds qualifications in Finance, Mortgage Broking, Accounting, Real Estate and Marketing. Dejan is a successful property investor and has been involved in the real estate business as a residential property developer for 20 years. Over this period, he has built significant property portfolio and has developed great business relationships with many Real Estate Agents, Developers, Finance Companies, and Law Firms. Contact The Midas Team

DUAL OCCUPANCY What is a Dual Occupancy Home? ​ ONE TITLE, ONE ROOF, TWICE THE RENTAL INCOME ​ In the most basic terms a “Dual Occupancy” property is a residential dwelling that has two separate living areas. This gives the owner the options to rent both areas or live in one area and rent out the other or live in both areas. A Dual Occupancy property should not be confused with DUPLEX where the dwelling can always be strata titled into two separate titles. The main difference between Dual Occupancy dwelling and DUPLEX is that in most cases you cannot subdivide and have separate titles with dual occupancy. ​ Utilising industry professionals including architects, land developers and construction companies we have assisted hundreds of clients with high yielding investments such as dual occupancy /auxiliary and duplex properties. It is this knowledge and the years of valuable experience that offers a competitive edge and advantage in the delivery of the best dual income properties compared with other property providers. Benefits of Dual Income Properties Higher Rental Returns Cash Flow Positive From Day One Maximise Taxation Benefits Higher Depreciation Claim Minimal Outgoings Single Freehold Title No Body Corporate Fees Reduced Risk Due to Two Rental Income Affordable Purchase Price Improve Debt Reduction Plan Creating PASSIVE Income Single Freehold Title No Body Corporate Fees One Set of Council Rates Building an Investment Property Portfolio That Pays For Itself Features of Dual Occupancy Homes TWO INDEPENDENT HOMES ​ WITH ALL THE FEATURES Privacy Privacy is maintained with each residence having its own entry, address and letter box, bin collection service and private outdoor space. Connections Electricity, water and NBN internet connection are separately metered and the property owner only pays one set of council rates. Safety The common wall is fire rated for safety and noise reduction. ​ ​ ​ Floorplan Examples ​ A SMARTER CHOICE FOR INVESTORS ​ ​ Built to maximise space and liveability, discover the innovative solution for investors seeking an affordable property with income-generating capabilities to deliver a higher rental yield per square metre. 5 Bed 3 Bath 3 Car Floor Plan DWELLING 1 The 3 bedroom, Open Plan living/dining, 2 bathrooms, double garage with large alfresco brings contemporary living with complete privacy and maximum living space. ​ DWELLING 2 A complete 2 bedroom, Open plan living/dining, 1 bathroom, Single garage with outdoor alfresco ​ Typically, a dual occupancy dividing wall is fire rated for occupant safety as well as noise reduction. Our dual Income properties come with quality inclusions to keep costs down and maximise style in a range of neutral colour schemes. ​ Rent out both sides for POSITIVE cash flow OR live in one half and rent out the other. 6 Bed 3 Bath 2 Car Floor Plan DWELLING 2 A complete 2 bedroom, Open plan living/dining, 1 bathroom, Single garage with outdoor alfresco. ​ Typically, a dual occupancy dividing wall is fire rated for occupant safety as well as noise reduction. DWELLING 1 The 4 bedroom, Open Plan living/dining, 2 bathrooms, single garage with large alfresco brings contemporary living with complete privacy and maximum living space. ​ Find Out More About Dual Occupancy Investments

INVESTMENT Can you afford to invest in property? The question should really be, “can you afford NOT to invest”, whether it be in property or some other form of investment? As many Australians already know, investing in property can have many advantages. It can help you secure your future, act as an additional income stream or improve your tax efficiency. ​ At Midas, we are very passionate about Property Investment, because we are active property Investors ourselves. We are committed to customer satisfaction and you will feel the difference in our services as we focus on adding value to our client’s current and future financial position. ​ Midas Property Solutions is offering industry professionals without high levels of investment property knowledge easy access to comprehensive property information and enables property investors to make an informed decision. Searching for the right property takes a considerable amount of time, – one of your most precious assets. Many of our clients are busy professionals and understand the need to leverage their time. ​ Property investment can be very risky if you don't have the right team around you with expertise and ongoing support. As an investor, you need to have a clear purpose of why you want to invest? ​ Property investment is not a Get Rich Quick scheme. Instead, investing in property is a strategic long-term investment, disciplined with a low-risk approach that is tailored to individual personal needs, goals, and circumstances. ​ Planning and effective strategies are the keys to build financial independence and when you start investing, it’s time to develop the mindset of ‘I am running a business’. ​ You need to be fully in control of your financial future, the power to control your financial success is in your own hands. You cannot get emotional in making investment decisions and you cannot speculate and hope for something to happen that you cannot control. ​ TO BECOME A CONFIDENT AND SUCCESSFUL PROPERTY INVESTOR YOU NEED A CLEAR INVESTMENT STRATEGY Know your Investment Objectives Determine Your Risk Profile Determine Your Borrowing Capacity What Type of Property is Most Suitable for Me Choose an Investment Strategy Research Locations that Fit Your Strategy Validate Your Chosen Locations What is Your Investment Property Exit Plan Who Benefits From Our Services? The Property Investor First Home Buyers Overseas & Interstate Buyers The Busy Executive or Working Couple Those With Little Real Estate Experience Those Seeking Confidentiality Our Strategic Approach To Property Investment Comprehensive Market Research Contract and Settlement Management Strategic Tailored Investment Plan Handover and Property Management Ongoing Mentoring and Support True wealth through property is built in stages WITH CORRECT STRATEGY How We Can Help At MIDAS we understand the importance of making informed decisions about property investments. We provide a complete end to end service helping our clients to make an informed commercial decision offering guidance, education and ongoing support. By assessing your financial situation, we are able to provide you with comprehensive and tailored recommendations to meet your individual goals with achievable strategies to: ​ Reduce your tax Pay off your home sooner Create wealth for comfortable retirement KNOWLEDGE + ACTION = POWER A WEALTH SUCCESS MINDSET ​ This is the most important layer because it is the foundation for your wealth. ​ Your wealth success mindset must consist of your beliefs, your positive thoughts and your actions in regards to money and wealth. ​ ​ ​ SKILLS AND KNOWLEDGE ​ Most of us are not taught how to invest, but finding the right mentors can assist with your investment journey. ​ Having the right guidance and advice is crucial to your property investment success. Mentors find ways to support and stimulate your personal and professional goals and it’s fundamental for achieving your financial success. THE CORRECT PROPERTY INVESTMENT STRATEGY Many investors fail because they have no strategy in place. They lack a thorough understanding of the basic property investment concept. ​ Property investment is not a Get Rich Quick scheme. Instead, investing in property is a strategic long-term investment, disciplined with a low-risk approach that is tailored to individual personal needs, goals, and circumstances. RISK MANAGEMENT ​ Strategic property investors protect their assets by owning them in the right ownership structures, having sufficient financial buffers in place to buy themselves time through the ups and downs of the property cycle and surrounding themselves with a professional team of advisors. ​ CASH FLOW ​ It’s essential to invest for capital growth, however we must recognise the importance of cash flow management through rental returns and financial buffers. ​ It’s really that cash flow it keeps you in the game till you’re ready to get out. ​ How do positive cash flow properties generate passive income? Clearly many property investors fail to achieve the financial freedom they desire so the answer is not to do what the majority of property investors do, and instead invest strategically like that small group of successful investors do. ​ 7 REASONS WHY PROPERTY INVESTORS FAIL ​ NO INVESTMENT PLAN OR STRATEGY UNREALISTIC EXPECTATIONS CASH FLOW CONCERNS INCORRECT FINANCE STRUCTURE DOING IT ALONE ASSESSING THE PERFORMANCE OF THE PROPERTY How has this property performed over the last few years? Knowing what I know now would I buy this particular property again? Is this property likely to outperform the averages over the next decade? Is there anything I could or should do to improve this property and generate a better return on investment for me? 7. LACK OF KNOWLEDGE AND NOT BEING ABLE TO VALIDATE THE RESEARCH YOUR RESPONSIBLE INVESTMENT PROPERTY ROADMAP ​ CAN YOU SAY ‘Yes’ TO THE FOLLOWING ​ I want to control my own financial destiny I want an experienced team to show me how to invest in a smarter way I want a mentor to hold me accountable I want to follow a system that is strategic disciplined and low-risk I’m ready to take action and make commitment while being supported by experts Because investing in property can be complex and up until this point, you may not have achieved the results you are looking for. Investing in property is a strategic, disciplined and low-risk approach that is tailored to your personal needs, goals, and circumstances. "An investment in knowledge pays the best interest.” Finding a property investment home loan that works for you! With our property investment expertise, we understand what investors should look for in a loan. We will carefully explain to you the differences between loans and recommend the loans that we believe are most suited to your circumstances. ​ We make the effort to understand your long term plans so we don’t just find you a loan that fits you today, but one that will work for you in the future. ​ Successful property investors know the importance of correctly structured finance and getting quality advice from competent, experienced industry professionals is the key to success building an investment property portfolio. ​ Midas specializes in showing new and experienced investors the most effective ways to correctly enhance current and future borrowing capacity for additional investments and access existing property equity to get started investing. ​ To arrange a FREE initial consultation to find out how much you could borrow and how Midas can help you buy a top performing investment property please call us on 1300 208 583 or complete this form and we will contact you. Contact The Midas Team

AFFILIATE PARTNERS Affiliates & Partners Our business model is based on integrity, transparency, and honesty and offers you the opportunity to be part of our collaborative business by joining the Midas affiliate program. ​ Our referral partners enjoy the support, the marketing tools, and the reputation of working with Australia’s leading residential property investment specialist. ​ And the Midas affiliate program is open to individuals, Real Estate Agencies, Mortgage Brokers, Accountants, Buyer’s agents, solicitors, Financial Planners and other Finance Firms. Through our profoundly built reputation of being a very client-oriented, you are sure to benefit from introducing your clients to us. ​ We always welcome partnership enquires and actively seek opportunities to network with like-minded professionals & organisations. We would be pleased to hear from any investors, property developers, or finance firms associated with the property industry. OUR CURRENT BUSINESS PARTNERS, TO NAME SOME OF THEM INCLUDE.... Ray White, Remax, Professionals, Image Realty, Multi Dynamic Real Estate, Midelca Financial Solutions, Exodus Lawyers, Liberty, Choice Home Loans, Real Estate Home Loans, Link Finance Group, Oxford Mortgage, SG Home Loans, Metricon, Australian Residential Group, Avanti, Tribeca Homes. Strike Development Projects Contact The Midas Team

FINANCE Life is all about finding the right solutions... At Midas, we are committed to customer satisfaction and you will feel the difference in our services as we focus on adding value to our client's current and future financial position. ​ Whether you're a first home buyer, a property investor or simply shopping around for a better home loan deal - we have the tools to help with your home loan search. ​ We have built a strong reputation as an outstanding mortgage brokerage firm, serving the lending needs of real estate professionals, builders and individual homebuyers. ​ Choosing the right loan is a vital factor when buying your own home or investing in property. Given the number of lenders and constantly changing products however, this can be a difficult task. With our in-house Finance Broking service, you’ll have an expert at hand to help you make this important decision. Why is it critical for property investors to find a mortgage broker they can work with as part of their team? Most mortgage brokers who are not in the space of property investing find it hard to understand the mindset of a property investor. ​ A good mortgage broker can also help you with property strategies, property selection, risk management, etc. You need a Mortgage Broker who understands property investors With our property investment expertise, we understand what investors should look for in a loan. We will carefully explain to you the differences between loans and recommend the loans that we believe are most suited to your circumstances. ​ We make the effort to understand your long term plans so we don’t just find you a loan that fits you today, but one that will work for you in the future. ​ Successful property investors know the importance of correctly structured finance and getting quality advice from competent, experienced industry professionals is the key to successfully building an investment property portfolio. ​ Midas specializes in showing new and experienced investors the most effective ways to correctly enhance current and future borrowing capacity for additional investments and access existing property equity to get started investing. Contact The Midas Team

TAX & NEGATIVE GEARING In the world of property investment you can make money in two ways: Capital appreciation: over time your property increases in value so that it becomes worth more than what you originally paid. Positive income returns: occurs when your investment income is higher than your investment expenses. ​ Do the sums carefully. If you have high loan repayments you may see little return or even a loss for a few years.For some investors this is not a problem because they count on; the tax relief that comes with negative gearing and the short term losses being greatly exceeded by the long term gains. ​ When it comes to property investments and tax there are three main things to consider: ​ Tax deductions Capital gains tax Negative gearing NEGATIVE GEARING Many investors are attracted to negative gearing because of its tax advantages. Negative gearing is when the annual cost of your investment is more than your return. Basically, when the cost of maintaining your property and paying the interest on your loan is more than the rental income you receive. With a negatively geared investment property you may be eligible for a tax deduction if you have a loss on your investment. Negative Gearing CASE STUDY John, a property investor, buys a unit for $300,000, putting in $50,000 of his own money and borrowing the remaining $250,000. The interest of 7% each year is $17,500 and the weekly rent is $300 or $15,600 a year. Ongoing costs including rates, water, insurance, maintenance and depreciation allowance are $2600 each year. After expenses, income for the year will be $13,000 ($15,600 minus $2600), equivalent to a net rental yield of 4.3%. However, annual interest repayments are $17,500, so he has actually lost $4500 during the year ($17,500 minus $13,000 = $4500). ​ The Result: John is eligible to receive a tax deduction of the loss accrued. TAX DEDUCTIONS Whether your investment property is negatively geared, or getting a positive rental income, you can claim expenses relating to your rental property for the period your property was available for rent. ​ You may be able to claim the following expenses from your investment property: ​ Advertising for tenants, agent’s fees and commission. Interest payments and loan fees. Council rates, land tax and strata fees. Depreciation of items such as stoves, fridges and furniture. Repairs, maintenance, pest control and gardening. Building and landlords insurance. Stationery, phone costs and any travel to inspect the property. ​ ​ For more informations visit ATO website. CAPITAL GAINS TAX Capital Gains Tax (CGT) is a tax on the profit you’ve made on your investment property. So it’s based on the difference between what you sell the property for and what it cost you (the purchase price plus anything you have spent on capital improvements or renovations). Will you need to pay Capital Gains Tax on Your Investment Property? To work out whether you have to pay CGT on your capital gains, you need to know: ​ The time of the CGT event How to apply any capital losses Whether the CGT discount applies Whether a CGT event has happened How to calculate the capital gain or capital loss Whether you are entitled to any of the CGT concessions for small business Whether there is any exemption or rollover that allows you to reduce or disregard the capital gain or capital loss The above information is provided for general education purposes only and does not constitute specialist advice. It should not be relied upon for the purposes of entering into any legal or financial commitments. Specific investment advice should be obtained from a suitably qualified professional before adopting any investment strategy. Contact The Midas Team

FAQ's Here is the collection of most common asked questions by our clients we have interviewed. Contact The Midas Team

SELF MANAGED SUPER FUND (SMSF) WHAT IS A SMSF? Self-managed superannuation funds (SMSFs) do pretty much what they say on the tin: rather than paying super contributions into an industry fund or wrap, you pay it into a fund that you run yourself. ​ You choose what to invest in, and that can include direct property. All the running expenses of the property are paid by the fund, meaning you’re not out of pocket in the same way you would be with a directly-owned investment property, and your fund can take advantage of significant tax benefits. CASE STUDY Helen wants to buy a residential investment property using her SMSF. The purchase price is $500,000. ​ She has $250,000 in her accumulation account after making a post-tax contribution. Since she doesn’t have the full amount to buy the property, the SMSF trustees arrange to borrow $250,000. ​ Using the borrowed funds and the deposit paid by the SMSF trustee, the security trustee purchases the property. To get the finance needed, the security trustee grants NAB a mortgage over the acquired property. ​ The security trustee is the legal owner of the property. Once the loan is repaid in full the legal ownership of the property can be transferred from the security trustee to the SMSF trustee. ​ This case study is a hypothetical scenario and is intended for illustrative purposes only. 6 Simple Steps for Setting Up a SMSF STEP 1 Draw up a trust deed The process of creating a SMSF starts with preparing a trust deed for the fund. This will explain how trustees were appointed and what their powers are. The deed must also set out when and how fund contributions and benefits will be paid. Most importantly, since the fund is being set up to invest in property, the trust deed must detail that property investing is allowed. ​ ​ ​ ​ ​ ​ ​ ​ ​ STEP 4 Create an investment strategy The law requires trustees to have an investment strategy for their fund. Theoretically, this does not have to be in writing, but fund auditors often ask to see typed out hard copies. The strategy should consider the risks and potential returns from different investments in the fund, the fund’s expected cash needs and its ability to meet any existing or future liabilities. There should also be a mention of the makeup of the fund’s investments and the amount of diversification there will be. STEP 2 Nominate Trustee(s) The majority of SMSFs have two members, though single membership and funds with three or four members are not unheard of. Either way, a common place among SMSFs is that all members of the fund are trustees. A trustee is legally responsible for the actions of the fund, which means he must log annual tax returns, prepare accounts and have the account audited. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ STEP 5 Open a bank account The last thing official step you need to take in setting up the SMSF is to create an account with a bank, credit union or building society. To decide which account will work best for the fund, look at the fees and minimum balance requirements, as well as the interest rates on earnings. ​ ​ ​ ​ ​ ​ ​ STEP 3 Clear the tax issues At this stage, you will need to choose if the SMSF will be a regulated or non-regulated fund. Being regulated means the fund will be eligible for an array of tax benefits, foremost being that money coming into the fund will be taxed at a minimum rate of 15%. Making your choice is as simple as completing an application form, normally available at the Australian Business Register (abr.gov.au). After submitting the form you will be issued a tax file number for the fund and an Australian business number. Another point to consider is whether or not the fund will be subject to the Goods and Services Tax (GST). For SMSFs that source yearly income from commercial property that exceeds $75,000 a year, GST is mandatory. Registering is optional for all other funds. STEP 6 Put money into the fund Now that the fund has been started, you need to put money into it. Transferring the existing money in your superannuation fund into the new SMSF account can take some time, but as soon as the money appears on the account balance, you can start buying property. ​ ​ ​ ​ ​ ​ ​ WHAT DO LENDERS LOOK FOR WHEN LENDING TO A SMSF? Deposit: typically at least 30% of the property value; Rental income: income expected from the property is factored into the borrower’s ability to make repayments; Patterns of contribution: how frequently and consistently members make contributions to the SMSF as these will also be relied on to meet repayment obligations; Structure of SMSF: must be compliant with ATO and ASIC rules; TAX BENEFITS How important are SMSFs in the world of tax-effective investing? ​ SMSFs are encouraging people to engage with their super in a way never achieved by industry and retail funds. The tax benefits that come from holding investments in a super fund can contribute hundreds of thousands of dollars’ worth of capital gains to your retirement savings instead of handing it to the taxman. REDUCE CAPITAL GAINS TAX TO BETWEEN 0% and 15% Tax on SMSF earnings is capped at the same rate as other types of super fund (15%). This means the maximum tax payable on the property’s income is 15%. Any expenses such as interest, council rates, insurance and maintenance can be claimed as tax deductions by the SMSF. ​ Capital gains tax is capped at 10% if a fund holds the property for more than 12 months and potentially no CGT bill will apply at all if the property is sold after you retire and your SMSF is in ‘pension phase’. WHAT CAN'T I BUY? Property for redevelopment and resale. ​ Property purchased for the purpose of redevelopment breaches the sole purpose test as may be interpreted as the fund carrying on a property development business or engaging in a one-off profit-making undertaking, rather than solely providing for members’ retirement. Your friend's old house An SMSF is generally not allowed to acquire assets from a member or an associate of a member. The word “associate” is very wide and includes many related parties. A holiday home you intend to use or lend to a friend Owning a holiday home you intend to use for private purposes (even one weekend a year) breaches the sole purpose test and in-house asset rule as you are now getting a current benefit from the asset and leasing an asset to a member or associate of the fund. Overseas property Although technically your SMSF can invest in all types of property including property located overseas, getting funding to do it is virtually impossible. According to Morgan you’ll be hard pressed to find Australian lenders who will finance an overseas investment or an overseas lender with the skills to navigate the complexities of Australian SMSFs. DON'T HAVE ENOUGH SAVINGS IN SUPER? If you’re looking for a way to buy a residential property but your super fund doesn’t have enough money, or you don’t want to go through an LRBA, there’s another option you can explore: ​ A Tenants In Common (TIC) arrangement would allow you to split the borrowing across your family home and your super fund. For example, if the property you want to buy is $400,000, with a TIC, you could borrow $200,000 against your family home and use $200,000 from your super fund. WHAT IS A LRBA? SMSFs can buy assets such as shares and property by using cash in the fund and borrowing the rest. This can enable the SMSF to acquire assets it currently doesn’t have enough money to purchase outright. Provided the governing rules allow, SMSFs can borrow to invest by using what’s called a ‘limited recourse borrowing arrangement’ (LRBA). ​ With this arrangement, the asset is held during the life of the loan in a ‘security trust’ for the SMSF by a security trustee (which is a company other than the SMSF trustee). ​ If the SMSF defaults on the loan: ​ the lender’s rights against the SMSF are limited to the asset held in the security trust (i.e. other SMSF assets are not at risk), and; the SMSF’s loss is limited to its beneficial interest in the asset and any repayments made before the default. ADVANTAGES AND RISKS OF BORROWING WITHIN YOUR SMSF. Possible advantages and disadvantages or risks of borrowing within your SMSF are dependent on your individual circumstances and investment arrangements. The potential advantages may or may not apply to you, depending on things like: your SMSF’s cashflow (contributions or earnings), your level of experience in property investment, the diversity of your SMSF’s assets and your appetite for risk. ​ We strongly recommend that you obtain your own specialist financial, legal and tax advice (from advisers holding appropriate licences and authorisations to provide that advice) before entering into an LRBA via your SMSF. If you are interested in using your superannuation fund to buy a long-term residential investment property, you may be unsure of where to start. ​ Midas Property Solutions can assist you with every stage of your SMSF property investment – get in touch with us today to discuss your options. Contact The Midas Team The above information is provided for general education purposes only and does not constitute specialist advice. It should not be relied upon for the purposes of entering into any legal or financial commitments. Specific investment advice should be obtained from a suitably qualified professional before adopting any investment strategy.