1. Sydney Cooperative Housing Society of NRB (Non Resident Bangladeshi)
Investment Opportunity of Utilizing
Self-Managed Super Funds
19th January st Parramatta Scout Group

2. OBJECTIVE
Establishment of a Housing Cooperative to live in a friendly neighbourhood during our retired life.
To ensure secured Investment for our future generation.
Avoiding the risk of losing “Super Fund” amount gradually by paying so called admin fee, insurance and on high risk investment etc.
To have more control by managing our own “Super Fund” through Self ManagedSuper Fund.
To maximize the return on our “Super Fund” investment by “Land Purchase & Development” for own use.

3. Background
First initiative was taken on July 2012 to buy a plot near Rooty Hill Masjid but could not be achieved due to small size compare to our interested members.
Another initiative has been taken recently to buy 10 acres of land but could be difficult. (
While exploring the financing opportunities for the above project, investment through SMSF came as an option to secure land through one off purchase.
A group of doctors had successfully implemented a similar project having a 5 acres of land in Box Hill.

4. Investment Options - Overall Scenario and it’s Analysis
Own Investment of $ 1 M to $ 2 M – Depending on the 60 to 80 members of the group with $ 25,000 each may accumulate maximum of $ 1.5 M.
Super Fund Investment of $ 1 M to $ 2 M – Above mentioned group with individual SMSF contribution of $ 25,000 each may accumulate $ 1.5 M.
ICFAL Investment of $ 1M – The probable funding from ICFAL at an approximate profit rate of 8% possibly would not exceed $ 1 M.
Maximum funding availability through Islamic Finance - The maximum amount of fund may possibly be made available up to $ 4.0 M for any kind of investment opportunity through Islamic Finance through ICFAL.
Minimum own investment for commercial Bank Loan - For commercial Bank loan, at least 50% contribution is a must and in such a case we shall not be able to utilize Super Fund contribution of $ 1.5 M. Maximum funding availability through commercial bank loan at an interest rate of 6.5% would not exceed 3.0 M.

5. Investment Options – through SMSF
The possibility of investment through Self-Managed Super Fund has been explored with conformity of the Super Fund Legislation by forming a “Company” to operate an “Unit Trust Fund”. Each SMSF holders shall be the beneficiaries of the “Unit Trust” as well as the “shareholders” of the Company.
Our proposed company shall run under 20 members of Board of Directors. Out of which 5 members shall be on “Board Executive Committee” and the other 15 members shall be on “Board Steering Committee”.
Board Executive Committee shall be authorized only to execute the unanimous decisions of the Board on major issues.
In case of any contested options, a general meeting shall be convened and a majority decision shall be executed by the “Board Executive Committee”.

6. Investment Options – through SMSF
The company/Trust may invest the fund in purchasing the Land at any growth zone of Sydney such as Box Hill, Schofields etc., for capital gain of around years or may decide to purchase few houses in populated suburbs for rental income as well as capital gain.
The investment needs to be locked for a fixed period of at least 10 – 15 years i.e., all the members shall be committed to keep their super fund in unit trust for that period. However, for any circumstances beyond control, members shall be allowed to “exit” the group on following conditions –
Redeem his share at it’s initial value to any of other group members.
Willing to bear the solicitor cost of modifying the “Trust Deed”.
Any other incidental administration cost.
No one can use their super fund until the age of 65, therefore, investment lockout for 10 – 15 years is a good choice for optimum capital gain.

7. Investment Options – through SMSF
The estimated cost for the company formation & to prepare the “Unit Trust Deed” would be around $ 6,000 to $ 8,000 .
We shall nominate a committee today of at least 5 members to organise the necessary activity required for company formation and identification of land.
We shall be collecting $ 200 each from interested members to create a total fund of about $ 10,000 for estimated 50 members group.
This money shall be used to create “Unit Trust Deed” by the solicitor and to register a company with ATO. The remaining amount shall be used to pay the initial deposit to real estate agent for any land purchase.
Once company is formed, the accounts shall be submitted to the Board for post approval.

8. Investment – through SMSF - Way Forward
To identify the interested members to join the group as an investor through SMSF, the following information shall needs to be provided –
The members yet to have SMSF, may contact the accountant present from Tax Solutions Mr. Ferdous, who has agreed to provide the necessary support at $ 450 for this group. The usual cost is within $ 800 to $ 1300 for creating Self-Managed Super Fund by any other competent accountant. The members are free to create their own SMSF by any other accountant of their choice.
It takes around 4 to 6 weeks to create SMSF and another 3-4 weeks to roll-over the fund to SMSF.
WestPac bank does not charge any monthly fee for DIY Super Fund accounts for SMSF Members.
Sl no
Name
Phone No
Organisation
Residential Address
Self Managed Super Fund Exists
Yes / No

15. Q&A