Case study: getting your financial house in order

Discover how a licensed financial adviser helped Rainer and Stacy make the most of their property investments.

For Rainer, 59, and Stacy, 58, retirement is fast approaching, but the couple are worried about handling their investments themselves. Here’s how their licensed financial adviser helped them to plan and manage their retirement finances without the stress.

Building wealth with bricks and mortar

Rainer and Stacy bought a commercial property as an investment 10 years ago and have been renting out the property ever since. They like the tangible aspect of bricks and mortar but want to diversify their options to grow their wealth and generate a comfortable income in retirement.

A diversified approach to real estate assets

To start planning for their retirement, Rainer and Stacy spoke to their licensed financial adviser about increasing their property portfolio. Their commercial property had done well for them, but it required ongoing maintenance, and their return was offset by costs such as rates and maintenance fees. 

Taking their preference for property into account, their adviser recommended Rainer and Stacy diversify their property holdings through investment funds. Their adviser also recommended the couple open a self-managed superannuation fund and use available contribution caps to acquire the commercial property, which satisfies the definition of business real property, from Rainer and Stacey. Their adviser was also aware that Stacy in particular, was committed to, and interested in managing their self-managed superannuation fund and had enough knowledge and time to commit to the ongoing compliance requirements.

Investing in property funds through a Self-Managed Superannuation Fund (SMSF)

Alongside their original commercial property, they rolled over their existing superannuation into the SMSF. The SMSF was then able to invest in a range of real estate assets to diversify the couple’s income options in retirement. The assets include investments into:

  • The Australian Unity Real Estate Investment Trusts (A-REIT) Fund. This gives them exposure to listed property across a diversified portfolio of retail, office and industrial real estate assets. 
  • The Australian Unity Property Income Fund. This delivers a stable income stream from a portfolio of property assets, including direct property, unlisted property trusts as well as A-REITS. 
  • The Australian Unity Diversified Property Fund. This provides a consistent, stable income, as well as modest capital growth over the longer term. 

With the assistance of their adviser, Rainer and Stacy are also investigating other investment options, such as managed funds and shares, to diversify and further spread the risk across their portfolio. 

An older couple of the beach with the man piggybacking a woman

Another path to property investment

The couple are delighted that they’ve been able to create a property investment portfolio that will provide them with income in retirement without requiring them to manage the properties themselves. “With the help of our adviser, we now have control of our future through the SMSF, and most of all we’ve invested where we feel most comfortable — in property,” Rainer says.

Tips on investing in property for your retirement

Getting the right advice on your investments can have a significant impact on your retirement finances — and your stress levels. Listed below are some tips to take the hassle out of property investment.

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