NOVAK NEWS - UNBELIEVABE MOVES: HOW PEOPLE ARE REVOLUTIONSING THEIR SUPER WITH PROPERTY

Unlock the potential of your superannuation and transform your financial future with insights from industry experts! In this episode, you'll discover how superannuation has evolved into a financial powerhouse since 1992, with contributions growing from a modest 3% to nearly 12%. We explore the rise of self-managed super funds, empowering individuals to take control and make substantial property and asset investments. Hear real-world examples and expert advice on leveraging super to secure loans and build wealth, setting you on the path to long-term financial success.

Imagine using your super to upgrade your family home or invest in commercial properties for your business—this episode breaks down how you can do just that. We discuss strategic property investments through super funds, from minimizing taxes to understanding capital gains. Learn from the highlights of the Smart Investor Night, where experts reveal the benefits of treating your super as a separate entity for significant leverage opportunities. Tune in now to revolutionize your investment strategy and make the most of your superannuation!

Transcript

Speaker 1: 0:04

Guys and girls, it's happening and we are seeing it a lot at the moment super animation moves with purchases out there. We're going to tell you about the different moves they've been making. Stay tuned, good evening how are you today Good?

Speaker 2: 0:39

bud you Very good good to see you.

Speaker 1: 0:41

Here we are, guys and girls. We wanted to tell everyone about what we're seeing out there with superannuation. Um, it's a big bucket, definitely big time. It's a big bucket. Now this is going to go. Just to give you an idea of how much money we're talking, guys and girls, there's three and a half trillion dollars in super. It's a lot of money. It's a lot of money. There's more money in super than the australian stock market. Yep, there's more money in super than we have debt. There's 10 trillion in the in the property market at the moment and we're sitting at three and a half and we've only just begun. So when it started, um, where were you 1992 in the?

Speaker 2: 1:29

womb. The thought of me was not even there. So 1992.

Speaker 1: 1:34

Uh, we had, uh, um, bob hawk turn around and say you know what we're going to make everyone um save, and it was about 3% when it was introduced. Now it's sitting, I believe, close to 11% for the next year and I think it's going up to 12%. It's finishing at 12%. So it's a huge war chest Big time. That's a lot of money 12% on everyone.

Speaker 1: 2:03

Yes, we're. You know, where are we in the world? Top five, yeah, yeah, can you believe that? So our population? We're less than one percent of the australian of the world's population. Point, we're 0.4 percent of the world's population, yet our war chest of super is number four in the world.

Speaker 1: 2:23

What to do with all that money? It's, oh, you know what. It's crept up. It's crept up, I think people sort of it was all very, I don't know. It was sort of half pregnant where you couldn't really do like for a lot of people it was like 20 grand, 40 grand, can't really do much with it, so it organically just sat in managed funds, whereas I think now people are going. You know what that's? A hundred thousand dollars of my money, or 200, or if I join it with my kids or my parents or my husband, you're talking, you know a quarter of a million dollars again, or half a million dollars again. Oh, my god, it's got it. It's got to this big critical mass where they're going. Yeah, maybe we don't want it in the stock market anymore manage it yourself.

Speaker 2: 3:11

Manage yourself. You want to be control of your own money taking with your money right, it's come from your paycheck to super yep, but it's frozen to you like 67 might not even live.

Speaker 1: 3:25

Oh, shannon Doherty, didn't hear about that lady from Beverly Hills on, it was a Beverly Hills 90210. Shannon Doherty, she's all 80, 52 passed away. You might not get there. You might not get there, but the Australian super is a big thing, guys. So what do you reckon?

Speaker 2: 3:47

I think you want to manage your own money. If that's going 10% to 12% up your paycheck, yep.

Speaker 1: 3:54

And that's sort of what people are doing at the moment. So we're witnessing it on the cold face, where it used to be like the mum and dad investor come along, they go to their buyer unit and off they go, whereas now they're doing it through a different vehicle, they're doing it through their super. So this is not a financial advice. It's purely an observation of people out there and what we're seeing them buy. What are you seeing on the streets?

Speaker 2: 4:21

I think it's very common these days, days like, I think, four or five years back then when someone said super, it's just some money your employer pays, pays for you, yeah, and you can only access it after retirement. I think few people got access when the covid was there lockdown happening, people got a little taste of it. But now when you're out there in the market day and they are salesman is super fun. It's getting very popular, yeah.

Speaker 2: 4:45

And lots of people wanting to be clever with the pricing going up. They're thinking other ways, Like what can I do? What?

Speaker 1: 4:51

can I have?

Speaker 2: 4:51

to think so. Self-managed is, I think, getting very popular these days.

Speaker 1: 4:55

Yeah.

Speaker 2: 4:55

And they're using and wanting to be their own driving, being in the driver's seat and controlling them.

Speaker 1: 5:01

I think that's what I'm saying it's interesting is and I think you know where you can leverage it. So to give you an idea, if I let's just not talk about super for a second if I have five hundred thousand dollars I can this is she's a hundred thousand. If I've got a hundred thousand dollars and I want to buy something on invest, if you leverage your money, that's when it's really getting potent, that's when it's really getting powerful. It's the law of leveraging. So if you, for instance, buy a hundred thousand dollars of shares, that's great.

Speaker 1: 5:46

Unique thing with property is that if you've got $100,000, the banks will give you $400,000 or even $500,000 to match your $100,000. So suddenly you can go out and enjoy the capital growth. You can enjoy the rent on five or six hundred thousand dollars of investment. Now, with stocks, that's very hard to convince a bank to say, hey, I've got a hundred grand, I want to borrow 400 grand for this stock for property. It's very easy now when we rewind that back to where we started this conversation for anyone who's just come in, we're talking about superannuation tonight. The powerful thing now with super is these deposits or the, the seed money that you're going to be leveraging of, of 50 000 or 100 000, whatever you can actually borrow a multiple of four or five on top of that that, and then you can enjoy the capital growth on the whole amount on the multiple, you can enjoy the capital growth on the whole amount on the multiple.

Speaker 1: 6:46

You can enjoy the rent on a multiple. It's pretty cool that's very interesting from a hundred grand.

Speaker 2: 6:53

That's like a little bit of money that can't buy a proper house. Yep, you go to the bank building you five. Yeah, that's me, yeah, so that goes for residential but but you're actually.

Speaker 1: 7:03

The funny thing is, the bank lends you the money but they let you keep the profits on all of the money and they let you keep the rent on all of the money, providing you keep up the interest repayments.

Speaker 2: 7:18

Okay, so all you have to do is pay in time pay in time.

Speaker 1: 7:26

Yep. So if your capital growth may be 10%, put rent on top of that, you may be getting 15% a year return on your investment. But the bank only wants 6%. Right, so you put in your 100k, you borrowed your 500k. It's quite compelling. Why would banks be prepared to do that on an asset of property and not an asset of stocks? I guess it's safe, yeah.

Speaker 2: 7:47

It's much safer.

Speaker 1: 7:48

You can probably see the property is registered somewhere, it's tangible, yeah. So then when we're blueprinting that across to superannuation, it's the same concept there where you can actually leverage your super, so you can can actually, if you've got a smaller amount, the bank will give you a larger amount and you can enjoy all of that capital growth and all that rent that's big-time leverage.

Speaker 2: 8:12

It's like you have one car. You go to the bank, they'll give you five cars you can rent all of them, yep. Enjoy all the income coming, yep. And you have to pay all the interest of those five cars.

Speaker 1: 8:24

In time forecast, technically see richest people in the world are doing it. They're using other people's money to become rich. Um, really good movie becoming warren buffett you watched it yet?

Speaker 2: 8:41

yep, I heard you mention a lot of times. I went the other day and watched it. You watched it yet?

Speaker 1: 8:44

yeah, I heard you mention a lot of times I went the other day and watched it.

Speaker 2: 8:45

You watched it. What'd you take from it? Uh, it's just, there was quite a lot. Yeah, I think that's probably one of them. Uh, you know, you don't have to be don't worry about getting that you need to take leverage of it.

Speaker 2: 8:56

yeah, and you always have to make your money work right. Like no one's rich by saving money. Yeah, and that was the biggest like a wake-up call. Like you can't get rich by saving money, and that was the biggest wake-up call. You can't get rich by saving money Because if you have like 20 grand in a bank, five years down the line you can't use the same 20 grand and buy the same thing, so you're just sitting there. Inflation and the tax was pretty much the biggest thing. You're earning, there's tax getting cut. You're buying something, there's tax getting cut. The person who put their shop there, he's paying tax as well.

Speaker 1: 9:27

There was a bit of that at the end.

Speaker 2: 9:29

And then super came in when we were talking about and anything that you buy through super and any capital gains there, there's no tax. Oh, I think that was my biggest biggest plus point. Yeah, can you say that again? That's a whopper. I think that was my biggest biggest plus point. Yeah, can you say that again? That's a whopper. Yeah, so if you buy anything from super and income coming from super, there is no tax, so when you're in full pension mode and retired.

Speaker 1: 9:57

That's pretty incredible. So if you buy something, if you're 40 and you buy something for you have $100,000 or $200,000 in your super. You buy something for you have 100,000 or 200,000 in your super, you and your partner, you buy something for 500, when you're 50, hypothetically, on the northern beaches that's worth a million dollars, yep, and hypothetically that's worth $2 million when you're 65. Sorry, 60. 60.

Speaker 1: 10:25

Now when you get into full pension age and full pension mode, when you sell that, normally in the property world you'll have to pay a thing called capital gains tax. So the government will say, put their hand out and say, hey, we want some of that. When you're in, when you've actually pension moan and you've sold, it's all in your pocket. And if you rent it, that's all in your pocket as well. So to give you an idea, you say that property that you have, that you bought 500, 000. You're 40, say that rent is two or three thousand dollars a week. By the time you're retired, that two or three thousand dollars a week if you're in full pension mode is untaxed. So that's another benefit. And look, we're not giving out financial advice, but we're noticing why people are getting into. The whole super thing is for these reasons. So we're talking to people and they're going. Why are you doing this and they're going? This is why it's like wow, wow, yeah, any other benefits?

Speaker 2: 11:27

Well, I think you have more control of your money, rather than you paying tax on pretty much everything you'll be like.

Speaker 1: 11:34

okay, I'll rather use it myself and utilize it there.

Speaker 2: 11:38

What are the benefits?

Speaker 1: 11:39

Well, what I notice is people are actually using their, because you could put up to I think it's 30 grand or something a year into your super Into your super.

Speaker 1: 11:52

You can load in there. Yeah. So I'm noticing like when people have got their kids moved out of home, it's just hubby and wifey and they don't have school fees. They're not. You know, they've got a bit of spare change. They actually focus on paying a little bit more of that spare change. So instead of taking and putting it in their pocket and saving it, they're whispering to their employer hey, can you put this extra five grand a year, or 10 or 15 into my super? So people are actually hiving away 30K each when they get to an age, when they're a bit more comfy, and that's paying off a property as well. Yeah, so it's. It's sort of. Yeah, I guess it's. You know, it's interesting because it's almost a tax. In a way, it's almost a forced tax. The government saying, hey, you know you've got to pay for this for yourself. It's going into your pocket, but if you can leverage that, I think that's damn clever. It's damn clever because you can actually just leave it in there doing nothing.

Speaker 1: 13:05

I had a talk with two girls yesterday, last night while at dinner having a chat, and it's a pain in the ass, super. So I've got an 18 year old, which is she's worked in the office. We set up a super for her and now she's got a job doing nursing and she's trying to get all the numbers from here and to make sure she's got telling her employer to say that's the account. So my other daughter turns around, says, hey, just get another super setup, and um, and then the youngest one goes it's not a bad idea. Oh, can you do that? Um, and I said what?

Speaker 2: 13:48

do you mean?

Speaker 1: 13:49

and then the eldest one goes. Oh, you know, I've probably got five or six different supers and I said you, you know what? Be careful, because I said you've got five sets of fees, you've got five setups, you've got five exits. So I said just be careful. So if you're not in control and smart, it can just wither away. It can wither away and wither away. It's like credit cards.

Speaker 2: 14:15

Yes, If you pay everything on time, use that no fees, no nothing. But it's cool, it's perfect. Yeah, but if you're late in payments, I'll take it.

Speaker 1: 14:25

I'll take it big time. We one of our crew he she's in her late 50s and she said that today she I'd just like to nominate just to pay more into my super and I don't want it to my take-home package, I want it to be less.

Speaker 1: 14:42

I was like why are you doing that? She's like well, I'm just paying less tax, makes sense. I was like, yeah, that makes sense. So, guys and girls, today is I guess the big message is, it's unbelievable moves and we're seeing people right now. This is fundamentally the critical turnaround or change that we can see, where people's appetite for property, with their super, is massive. And if you don't know, we're telling you and sometimes it may not be a barbecue conversation or a conversation you have with friends and family, but I'm telling you at the moment it is out there, it is massive and there's a lot of people doing it.

Speaker 2: 15:26

Look at all the.

Speaker 1: 15:27

Bunnings warehouses.

Speaker 2: 15:29

Pretty much 90% of our buyers are there and at this stage I don't think you have to mention do you want to buy from the super?

Speaker 1: 15:40

They all do buy from the super, they all do. But yeah, people are getting clever, I think the words getting around, yeah, yeah, it's out there. Yeah, what else been done? Anything else you?

Speaker 2: 15:44

want to cover. I think that is pretty much all. I think. Any comments, no questions, no questions. They're guys were live show.

Speaker 1: 15:51

So if you want to ask us any questions about what we're seeing out there on the streets with people's moves, on what they're doing with super, let us know we're here. Um, give us a call. Uh, we're here, but, um, it's. It's also little money, like we've got people that are, um, believe it or not, in their late teens and early 20s, that are buying Because, don't forget, we've got storage for $198,000, which is technically a property. So they're buying storage in their superannuation and they don't have a lot of money there. So, yeah, I guess if you want to make an investment, do you know what my golden nugget for today is when we did the talk.

Speaker 1: 16:45

um, actually, if you want, if you guys really want to dig, dig deep and dive deep, um zero, four, six, zero, triple, one, triple. I'll put the comment, I'll put it in here. This number, 046011111. Okay, that number, I'll just put it on the screen. If you SMS that number, sms the word SMART, okay, s-m-a-r-t. Sms the word SM, smart, to that number and you'll get our all of our slides from a smart investor night.

Speaker 1: 17:24

That's good. How good was that? That's beautiful, and you? There's actually a video with the account with an amazing accountant, one of the best accountants, I in my world. There's also the videos a video from the mortgage broker talking one of the best brokers in Australia. Yeah, and myself talking about that. Now, what I was saying is the best part. The best part. The best was the best part. I lost it.

Speaker 1: 17:56

There was leveraging super, there was quarantining in a way. There was the capital gains that we spoke about. There was the 198K being able to buy something. So at a really, really low price point, the amount that's in super. They're $3.5 trillion Trillion dollars that's sitting in super at the moment there's. You can leverage it so you can get, basically, if you've got a 20% deposit, 30% deposit, you can generally you can leverage it to sort of 70% with people. What we're seeing people do at the moment with it we're seeing people actually using their businesses. So they're actually buying commercial property in their super for their business. You can't live in it if it's a new residential but you can. Actually if you're an arms-next transaction, your business can actually rent it, which is clever From that there was a whole bunch of different aspects.

Speaker 1: 19:02

So that smart investor night I think you're going to get a lot of gold out of it. The bunning storage you can buy. I think we covered everything, but there was a nugget there that I missed.

Speaker 2: 19:16

If people are keen, it'll come to you tonight It'll come. You know what I can guarantee that Smart Investor Night.

Speaker 1: 19:22

It'll come out there. When we did that Smart Investor Night, there was plenty of gold talking. Oh, that was it.

Speaker 2: 19:28

I got it yeah.

Speaker 1: 19:30

The big one, drum roll, drum roll the big one, drum roll, drum roll the big thing I got out from listening to the account on the Smart Investor Night was people were reluctant to borrow more money on an investment because they wanted to improve their home. Okay, so that's it. Guys, listen to this. You're going to find this unbelievable.

Speaker 2: 19:51

If.

Speaker 1: 19:51

I go and borrow $400,000, $500,000 on my super. It is completely independent of myself and my wife's lending capacity. So say, I'm thinking of selling a three-bedroom family home and I want to buy a four-bedroom family home. I'm thinking I'm not going to borrow any money in my super because I want to buy a four bedroom family home. I'm thinking I'm not going to do anything, you're not going to borrow any money in my super because I want to improve the family home. It is completely independent of your personal lending or your business lending. Your super lending is like another human, like another entity, like another person. So you basically get a version. You basically get like a free person to lend money for you, which is called your super. Yeah, it's a virtual you, a virtual you is the person that borrows.

Speaker 1: 20:44

So when you go to the bank and ask them about you know, you know buying any of your property in your name or improving your family home in your name they don't actually look at the amount of debt you've loaded into your super that's a lot of leverage, that's a lot of leverage, that's a lot of leverage.

Speaker 1: 20:59

I'm glad, actually I'm glad because if I remember that I would have walked away and went. Ah, that was it. So I hope that helps everyone out there tonight, definitely, and anything else we missed. No, we nailed it. That is pretty much all. Super, super, super, super, super. So, guys and girls, have a great night. And what happened to the screen bits? I have no idea.

Speaker 2: 21:25

We have to figure it out.

Speaker 1: 21:26

The screen is gone.

Speaker 2: 21:31

What happened?

Speaker 1: 21:32

bits have no idea the screen just turned off.

Speaker 2: 21:35

The idea was so good, the computer blew away.

Speaker 1: 21:40

Oh, it just dropped the mic. The idea was so good. Yeah, all right.