Welcome to Episode 143 of The HMO Property Show with your host Neil Gibb!
In this episode, we dive into a new and innovative strategy for investors looking to build a cashflow-positive HMO within their Self-Managed Super Fund (SMSF). If you’re looking for a secure, high-yield investment that can set you up for a strong retirement, this episode is a must-listen!
Watch the full episode below:
Episode Summary: A Smarter Way to Invest in Your SMSF
Neil Gibb breaks down the traditional SMSF property investment model and introduces a new off-the-plan strategy that enables investors to access premium inner-suburb locations while maximizing long-term capital growth and rental yield.
Historically, many SMSF investors were limited to fringe suburbs, facing high land costs and oversupply risks. With this new model, investors can now acquire better properties, in better locations, with higher returns.
Key Takeaways from Episode 143
Why traditional SMSF property investments may not be the best option
- The one-part contract model requires a large cash deposit (~$400K).
- It limits investors to fringe suburbs, which may face lower long-term capital growth.
- Many “co-living” operators are pushing oversaturated areas, which could impact future rental demand.
The new off-the-plan SMSF model: A game-changer
- Investors buy into premium, high-demand inner-suburbs (0-15km from CBD) instead of fringe locations.
- Lower upfront investment (~$380K vs. $400K) due to strategic land acquisition.
- Increased development uplift means your property has instant value growth.
- Secure long-term stable cashflow ($100K+ per year) while reducing tax liabilities.
How the process works
- Step 1: Invest in a strategic land subdivision project (e.g., buying a 1,000 sqm block & splitting it into two).
- Step 2: Fund the development through an SPV (special purpose vehicle) with other investors.
- Step 3: Property is developed into a custom-designed, high-yield HMO.
- Step 4: The bank refinances the completed property directly into your SMSF, giving you a long-term, debt-free asset.
Why This Strategy is Better for SMSF Investors
Higher capital growth potential – Premium locations appreciate faster. Less competition – Most investors don’t have the knowledge or expertise to deliver HMOs in these areas. Stronger rental demand – Inner-city HMOs attract quality tenants, ensuring stable occupancy rates. Fully integrated investment model – From acquisition to development and property management, it’s all handled in-house.
Final Thoughts: Should You Consider This Strategy?
If you’re looking to maximize returns and build long-term wealth within your SMSF, this off-the-plan HMO model is a game-changing opportunity. However, as always, seek professional financial advice before making any decisions.
Want to learn more?
Book a strategy call with our team to see if you qualify for this investment.
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Listen to the full episode here:
