What is a Power Super Warrant?
It is the legal architecture that establishes and documents the relationship between you, your SMSF, your property and the lender. Its purpose is to allow you to borrow money to purchase the investment property of your choice within your SMSF, ensuring compliance with all aspects of regulation and legislation.
- A PowerSuper Warrant enables this by sourcing the loan and legal documentation for use by qualifying SMSF’s.
- We source ONLY Bank Funding, not securitised funding which is exposed to the credit market issues prevalent at this time.
- We pay mortgage application and processing fee, with no ongoing charges or annual fees.
- Our fees include the legal documentation for the warrant, our fee for facilitating the loan and property valuation. Total fee $6,600.00 (inc. GST) — no ongoing charges or annual fees.
- A PowerSuper Warrant requires the trustees of an SMSF to have an understanding of finance, gearing, investment strategies, SMSF regulatory requirements and the use of trusts – for the purpose of investing through a tax-efficient structure to help achieve the wealth necessary to fund the retirement of the SMSF members.
- A PowerSuper Warrant is a strategy that is implemented by a series of contractual arrangements involving the members of the SMSF, a Financier, the SMSF (Investor) and the trustee of a Warrant Trust (Trustee). These relationships are governed by the Legal Documentation implementing the strategy.
- PowerSuper has streamlined the application process to make this as simple as possible for the trustees of SMSFs, their accountants and advisers.
- Powersuper has removed the usual requirement for annual reviews of the Warrant facility, saving on more fees and administrative burden.
A Powersuper Warrant takes the hassle out of geared property investment within SMSFs.
How To Apply For A Powersuper Warrant
PowerSuper is ONLY available through :
- Accountants
- Lawyers
- Financial Advisers
- SMSF Administrators
If you fit into any of the above listed categories, then before you refer clients to us, you must register as an adviser with us, by simply completing the registration form.
PowerSuper is NOT available to SMSF trustees directly. PowerSuper also DOES NOT:
- Provide financial advice
- Provide SMSF Administration services
The Process
Every aspect of the Powersuper Warrant is explained fully in the current Powersuper Information Memorandum which may be downloaded from the Powersuper website. Ensuring that you have access to this important document, simply follow the follow the following steps after you have confirmed your capacity to service a Powersuper Warrant Loan using the "How Much Can I Borrow?" calculator:
- Step 1: Discuss investment strategy with your advisers; read the Powersuper Information Memorandum.
- Step 2: Obtain preapproval for desired amount from Powersuper.
- Step 3: Choose property.
- Step 4: Apply for Powersuper Warrant.
- Step 5: Once documentation has been received, enter into contract for sale.
- Step 6: Settlement of property.
Key Points For The SMSF Trustee
- Choice of property investment, subject to minimal constraints.
- Full management control over the investment.
- No third party trustees.
- Entitlement to Land Tax exemption threshold.
- Additional properties can be added to a PowerSuper Warrant at a later date.
- Flat fee to set up.
- 30 year term loan.
- Competitive variable interest rate.
- Secure, balance sheet funding from a major global bank.
- 5 year Interest Only period (may be extended).
- Monthly payments in arrears.
- Transparent structure with no ongoing fees.
- No reviews.
Key Points For The Adviser
- Total compliance solution.
- Not a financial product, so you can choose who will provide advisory and/or administration services.
- Full marketing support package, including calculators, to help you present options to your clients.
