Uncertainty about changes to superannuation and the tax treatment of property investments make it prudent to perform a thorough analysis of existing and future investments. The parliamentary debate over superannuation changes seems to be moving in the direction of a review of the $500,000 non-concessional contributions cap and not with changes to the limitations on tax concessions on large balances / high net worth individuals. Presumably this will cause an increase in investments outside of superannuation especially as negative gearing has been left alone. A combination of apartment oversupply and lower population growth could tip the market in many states into an oversupply basis in 2017 and beyond. Understanding how such changes will affect investment returns is necessary for the successful management of investment portfolios.
NetActuary have the calculators and paraplan reports for advisors that form a component of such analysis. These reports provide insight in to how changes in investment conditions will affect returns and include analysis of such things as:
- What holding structure to use;
- What investment support and income cash flows are generated;
- How the expected rate of return varies with exit points;
- How gearing levels affect returns;
- How sensitive returns are to assumptions (e.g. capital appreciation, occupancy rates, mortgage conditions, and so on).
NetActuary has a consultant - Dr. Ben Whale - working exclusively in this area. If you would like a report then please either complete the data form on our website, call Ben on 03-6223-2320 or email him at email@example.com. A link to the data form is https://netactuary.support/PDFs/PropertyPurchaseDataForm.pdf
If you are an individual, please ask your financial planner to obtain this report.
The NetActuary Team