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
Depreciation strategies — Building allowance (Div 43) + plant & equipment (Div 40)
CGT management — The depreciation clawback trap that catches many investors off guard
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
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
LRBA leverage inside super

Property Analysis (Investor Mode) → Debt Recycling Calculator →

Advanced Strategy

SMSF Property

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

What is an LRBA?

A Limited Recourse Borrowing Arrangement allows your SMSF to borrow to purchase a single acquirable asset (like property). The lender's recourse is limited to that asset only — protecting the rest of your super.

Residential vs Commercial

Residential — Cannot be lived in by members or related parties. Purely an investment.
Commercial — Can be leased to a related-party business at market rates. Powerful for business owners.

Benefits

Tax-advantaged rental income (15% in accumulation, 0% in pension)
Potential CGT-free sale in pension phase
Leverage inside super via LRBA

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 Bare Trust

A separate bare trust holds the property until the loan is repaid.

3

Find Property

Identify a property that meets SMSF investment strategy requirements.

4

Arrange LRBA

Secure the borrowing arrangement and settle the purchase.

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