Property Strategy - Merit Financial Services

Our Philosophy

Where Does Property Fit?

📊One asset class among many - Property works best when it's part of a broader strategy, not the entire strategy
🏗️Structure over property - The right ownership structure matters more than the right property
💰Tax implications vary dramatically - Personal, SMSF, company, and trust ownership each have very different tax outcomes

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The Full Picture

"We help you see the full picture before you commit."

Getting Started

First Home Buyers

Buying your first home is exciting - and complex. We help you navigate the grants, concessions, and strategies available to first-time buyers.

Stamp duty exemptions & concessions - Vary by state, and can save you tens of thousands
First Home Owner Grant - Government grants for eligible new home purchases
First Home Super Saver Scheme (FHSSS) - Use voluntary super contributions toward your deposit, saving tax along the way
True cost of ownership - Budgeting beyond the purchase price: rates, insurance, maintenance, and opportunity cost

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First Home Tools

Run the numbers before you commit

Property Analysis Tool →
Mortgage & Offset Calculator →

Wealth Building

Investment Property

Property investing is about more than just buying and holding. The tax structure you choose can make or break your returns.

Key Considerations

Negative gearing & cash flow planning - Understanding the real after-tax cost of holding property. From 1 July 2027, losses on established residential property bought after 12 May 2026 offset rental income and property gains only; new builds and existing holdings keep full negative gearing
Depreciation strategies - Building allowance (Div 43) + plant & equipment (Div 40)
CGT management - The depreciation clawback trap, plus the move from the 50% discount to indexation with a 30% minimum on gains from 1 July 2027 (gains to 30 June 2027 keep the 50% discount)
Property vs Shares - Which delivers better after-tax returns for your situation?

💡 Jim's Insight

"Shares personally, property in super - here's why."

Shares in your own name give you:

CGT loss harvesting
Franking credits
50% CGT discount on gains to 30 June 2027, indexation after
Liquidity
No depreciation clawback

Property in SMSF gives you:

15% tax on rental income (vs marginal rate)
10% CGT in accumulation phase
0% CGT in pension phase
One-third CGT discount retained, untouched by the 2027 changes
LRBA leverage for commercial premises

Property Analysis (Investor Mode) → Mortgage Calculator →

Advanced Strategy

SMSF Property

Buying property through your SMSF can be tax-effective - but it comes with strict rules and unique risks.

Commercial property: borrowing through an LRBA

A Limited Recourse Borrowing Arrangement allows your SMSF to borrow to purchase a single acquirable asset. The lender's recourse is limited to that asset only, protecting the rest of your super. From 10 August 2026 a new LRBA can only be used to buy business real property: commercial and industrial premises used wholly and exclusively in a business. It can be leased to your own business at market rent, which makes it one of the strongest strategies available to business owners.

Residential property: the non-geared unit trust

For residential property, the SMSF invests alongside members personally, family or another family SMSF through a non-geared related unit trust. The trust buys the property outright with pooled cash, carries no debt, and the SMSF's share of the rent and growth is taxed at super rates. The trust must meet the conditions in SIS Regulation 13.22D: no borrowing or mortgage, no business, no related-party purchases, and the property cannot be lived in or rented by members or related parties.

Existing LRBAs, including residential, continue unchanged and can be refinanced.

Benefits

Tax-advantaged rental income (15% in accumulation, 0% in pension)
Potential CGT-free sale in pension phase
Leverage for commercial premises via LRBA
Access to residential property through a non-geared unit trust

Risks

Liquidity - property is illiquid and super needs cash flow for pensions
Sole purpose test - the property must be for retirement benefits only
Related party rules - strict restrictions on who can use the property

The SMSF Property Process

1

Establish SMSF

Set up the fund with appropriate trust deed and investment strategy.

2

Set Up the Holding Structure

A bare trust holds commercial property until the LRBA is repaid, or a unit trust holds residential property outright.

3

Find Property

Commercial premises for an LRBA, or residential property for a non-geared unit trust, within the fund's investment strategy.

4

Fund and Settle

Put the LRBA in place for commercial premises, or subscribe for units with pooled cash, then settle.

SMSF Guide → LRBA Calculator →

Interactive Tools

Our Property Tools

Run the numbers yourself with our suite of property calculators and guides.

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Smart Property Decisions Start with the Right Structure