Babcock & Brown SPI Plan Home


Overview

The Babcock & Brown SPI Plan is an innovative but simple structure which allows super funds the ability to leverage a direct investment in residential real estate. The super fund selects a property from an approved list and pays a deposit upfront. The super fund is entitled to all income (and must pay any outgoings) from the property. Over the 10 year term of the SPI Plan the super fund pays a financing fee every year that it decides to continue to participate in the SPI Plan. The super fund also has the option to make payments (or instalments) towards the balance of the purchase price of the property.

At the conconclusion of the 10 year term (or earlier if the super fund elects), the property is sold. The outstanding balance of the purchase price is repaid and any capital gain is kept by the super fund.


Some key features of the SPI Plan structure are:

  • The SMSF pays an upfront deposit of 20% (in some cases more) of the purchase price of the selected property upfront (plus other upfront fees and costs)
  • The balance of the purchase price can be paid in instalments over 10 years
  • The SMSF is entitled to any income from the property from day one
  • The SMSF does not borrow money - no recourse to any other assets held by the SMSF
  • The SMSF pays an annual financing fee
  • SMSF receives gross rent and pays outgoings (net rental) from day one
  • Title is transferred to the fund after the balance of the purchase prices has been repaid
  • The SMSF can sell the property or hold it at the end of the term
  • As the instalment contract is not a loan, the structure complies with both SIS and ATO guidelines
  • The SPI Plan is only available through a limited number of approved accountants and financial planners. For an approved organisation in your area, please contact the SPI team on 02 9229 1800 or email at mail@spiplan.com.au
  • If you are a financial planner or accountant interested in becoming authorised to advise on the Babcock & Brown SPI plan please contact the SPI team on 02 9229 1800 or mail@spiplan.com.au
  • For more information about properties available through the SPI Plan, please contact the SPI team on 02 9229 1800 or mail@spiplan.com.au

For further information on the Babcock & Brown SPI Plan please click here www.spiplan.com.au