The SMSF Borrowing Ban Is Now In Effect

George Markoski The government has consistently made the housing crisis worse. It’s almost like they’re manufacturing this crisis, they’re creating it because now the deadline is over and you literally cannot borrow money to buy a property in super. Jeff Bennett I cannot understand how they would say, we know that this builds brand new property every single year and they need more property built every single year and they’re actually stopping it. Our life savings has turned up in these schemes that we call like a superannuation fund and they always seem to be changing the rules on those things. But what I ask people is to be sceptical and curious about where your money is, who is in control of that money and follow the money trail. The amount of money that we’re talking about is spectacular. It’s huge, and they want to control it. George Markoski So can we still buy property in SMSF? Yes, we can. You can still buy property as SMSF so it’s not all lost. It’s going to make it more difficult. It is more difficult. It’s harder. Jeff and I are going to talk about a few different ways we can do this behind the scenes. Jeff has been working hard, doing different things. There’s a lot of new things coming out at the moment. Hello. George Markoski from the Positive Property Show. Now, the government changed the rules and the smart investors are actually moving ahead. The people that are going to make money are the people not that are caught up complaining about what’s happening, but the people finding ways around it. So later on the session, I’m catching up with Jeff Bennett. George Markoski He’s an expert on super. George Markoski And we’re going to talk about ways around what is happening currently, because since August 12th, I think it is, you cannot borrow money in an SMSF anymore. So we’re going to be doing a deep dive. What that means for the Australian economy, what it means for investors and what the smart investors are doing now. Let’s get started. So the RBA just announced they’re keeping rates stable, so they haven’t changed the rates at all, which is good news. So here the rates are holding at 4.35%, so the pressure isn’t over yet. Cash rate remains at 4.35% after three hikes over this year of 2026. Inflation is expected to remain above target well into 2027. And a lot of that’s to do with oil. George Markoski And waiting for rates to fall is not an investment strategy. George Markoski There’s a lot of people out there waiting for them to fall. It’s not going to happen just yet. But this is where we’re looking. So inflation is not going to return to the RBA’s midpoint until early 2028. So you look at this graph, this is trimmed mean inflation actual. And as you can see, in September 2024 it was above 3.5%. And then the RBA midpoint is 2.5%. Now, the RBA’s forecast, that’s going to hit around about early 2028. What does this mean? Well, the inflation is expected to remain above the 3% target until mid 27. And therefore the RBA doesn’t expect underlying inflation to return to 2.5% until 2028. So don’t build a strategy on rapid rate relief. (1080p).mp4 George Markoski Now, the other thing, part of this equation is if you look at the Western world, I’m talking America, UK, Canada, Europe, New Zealand, all their central banks drop rates. We’re the ones standing out as normal. The Australian Reserve Bank likes to keep rates high. Annoys the hell out of me. So hopefully do something about that so the opportunity is not disappearing. Smart investors don’t wait for perfect conditions. They adjust the conditions in front of them. So that’s the message. Now let’s talk about real people, real results. Now I want to talk about one of our members. I want to talk about jay and Bernadine McCormack. Now, Jay and Bernadine, they joined our membership about three years ago and this is what they’ve done so far. George Markoski This is their property at Raceview. This is their first investment property. Three bedrooms, two bathrooms, one car. George Markoski $452,700. And now they bought this in an SMSF while we could, through the government. They settled in June 2023 for $452,700. The total market value now is $710,000. The current profit is $257,000. They also bought Pinjarra in WA. Three bedrooms, two bathrooms, two cars. $459,990, 20% Deposit using their equity, so zero real dollars. They settled in May 2025 for $459,000. The market value now is $730,000. Current profit is $270,000. Current total profit in just three years, $527,000. Okay, let’s bring Jay and Bernadine on. Jay and Bernadine. Hello, Jay and Bernadine. I see you on Thursday night quite often here and sometimes we get to chat in the room. So really rapt to have you on here. So welcome. Jay McCormack Thank you. George Markoski Tell me a little bit about your story. Jay and Bernadine, when did you discover that property was the way to go. Jay McCormack I was thinking about it for a long time and I just never did anything, you know, went on for 10 years. And then one day he just popped up on my Facebook feed and the rest was history. I signed up that day. I woke up before work that morning and I said, I need to do something now. And I’ve just done it. George Markoski (1080p).mp4 Right. Very decisive, well done. Jay McCormack But the thing that got me was I used to. I always watched Robert Kiyosaki’s videos and then when your reel popped up, I saw it had you with him. So that sort of just said it must be a sign. And that’s why I joined no Amazing Story where I researched all the companies or anything. I just. I just did it. George Markoski Yep. Okay, great. Because I know a lot of members especially we had this lawyer in Sydney and she researched 300 companies and did a database and spent three months doing it. And look. And at the end of the day, obviously Robert Kiyosaki was a big factor. Now, Bernadine, were you supportive of him joining Positive Property? Investing in property at first? Bernadine McCormack I didn’t know anything about it. Okay. George Markoski Okay, there you go. Bernadine McCormack Then he’s like, oh, we need to sort of like have a look at this. And then he sort of like had the book and he was talking about it a lot and then. Yeah, we just. I was like, okay, is it something that looks good? Our family? Bernadine McCormack I was like, yep, totally go for it. (1080p).mp4 George Markoski Nice. I like it. Very supportive. Now, Jay and Bernadine, tell me a little bit about yourselves. Where do you live? What do you do? Jay McCormack We live in New South Wales. In Newcastle. George Markoski Newcastle. Lovely spot, love. Newcastle. Jay McCormack Yeah. In Thornton. Newcastle. Yeah. I currently not working because I had a stroke and the doctors told me I’ll never work again, so. So I’m happy that I’ve done already with property. So. George Markoski Yes. So you joined before stroke. Yeah, invested in property. So the timing. You just knew, didn’t you? Because it’s interesting that your timing, you just decided to do it and get in there. Jay McCormack And the funny thing was to do it all, I had to set up the SMSF to get the property and I had to because I rolled over my. My industry. super. The insurance in there was terrible. Terrible. So I was lucky because I set that up. It was a requirement to have insurance. I went through all that and got it, got a good one. George Markoski Wow. So setting up the SMSF actually. Wow, that’s amazing. I love to hear positive stories like this. That’s (1080p).mp4 amazing. And Bernadine, what do you do with yourself? Bernadine McCormack Well, I’m caring for Jay. And my mum here, she has type 1 diabetes. George Markoski Yep. Yeah. So you invested in property and you’ve made. How much money did you make? Was it 500? Jay McCormack Yeah, $527,000. George Markoski Just 527. Jay McCormack $527,000. Sorry, yeah, yeah. George Markoski In how long? Jay McCormack In three years. (1080p).mp4 George Markoski In three years. So I’m just curious, setting up the SMSF, investing in property, you made $527,000. And knowing what happened now you had that stroke. How has this changed your life? Jay McCormack Yeah, it’s changed my life in many ways. Some ways it’s good because I always worked away, I was always waiting. Now I’m home with my family all the time, so that’s a good thing. But I’ve got also other hurdles to get across now, because my plan was to get 10 in 10 years, but now I don’t have income, I’ve got to think of other ways how to get. Not saying I can’t, then call it quits when. George Markoski Exactly. Because there’s always a way around it. And you don’t call it quits, which is great. But I think, you know, you got two properties, you got the right insurance, and now you’re in a much better place than you would have been if you didn’t do any of this. Bernadine McCormack Well, we have three, because we have our primary as well. George Markoski Yep. Yeah, exactly. So, yeah, you’ve got your primary, you got those other two, which is great. So that. That’s really good. How was your. I mean, I was gonna ask, how was your journey? Obviously, it was pretty hectic with what’s happening right at the beginning. Bernadine McCormack It was good. (1080p).mp4 Bernadine McCormack It was, like, very fast. Like, when it first started, he was, like, talking about the first property, which I was fine with, and I was like, oh, yeah, yeah. And then all of a sudden, it was, like, straight into the next one. I was like, oh, my God, can we do that? Like, I was just worried about the kids and stuff. George Markoski Yeah, yeah. Bernadine McCormack I just sort of, like, set it up and went through everything. And then when we came to Bali and just like, talked more what they were doing and how they were doing, I was like, oh, okay, then. And then, like, it was literally six months after that Jay had the stroke. George Markoski Yeah, okay. Yeah, yeah, yes. Remember, I saw you in Bali. Now, what I was going to ask is, so being part of the community, how has that. That’s given confidence to invest, Is that what happened there with the community in Bali and everything else like that? Jay McCormack Yeah, definitely. Yep. George Markoski Yeah. (1080p).mp4 Bernadine McCormack The little meetups that we had in the central coast just talking there with a guy from us just in Raymond Terrace and he was saying he had nothing and then now he’s got like three or four properties. Jay McCormack He was on last week. Andrew. I think it was Andrew. George Markoski Yeah. Yep. How many does he have now? Bernadine McCormack Five. Jay McCormack Five. And he’s done it in three years as well. George Markoski Yeah, yeah. But look, the average Australian doesn’t have any investment properties and the average investor has one and you’ve already got two. So you’ve done well. You should be proud of yourself. And knowing you, Jay, because I’ve met you a lot more times than Bernadine, you’re not the sort of person to quit. Right, I can see that. Jay McCormack (1080p).mp4 Right. George Markoski And you know, I think there’s going to be, you know, many more legs on that. So you invested in two properties and now obviously they’ve done well. How’s the rent going with those properties now? Jay McCormack Yeah, the rent is going good. It’s. I think it was 450. At the start it was appraised for. It’s now like 600. Bernadine McCormack Wow. Wow. Okay, great. Jay McCormack Perth in wall, that’s 600. And the one in Queensland is 580. Right. George Markoski Okay. Wow. So you’re getting better rent than what you expected as well. You’ve made equity. So financially you’re slowly building your portfolio, which is great. What would you say is the best part of the programme for you? Jay McCormack Probably these SHIRPs we have every Thursday because I learned so much. Like I think of questions but everyone sort of has the same questions and somebody asks it so that I don’t really talk much but there’s always someone that asks a question that you’re thinking of. (1080p).mp4 George Markoski All right. Okay, that’s good. Jay McCormack Yeah, I think we’re all thinking the same things. Like we want to know the same things. George Markoski Okay, awesome. If someone watching this right now because we’re live and they said okay if they’re looking at joining Positive Property or want to investigate us, what would you say to them? Jay McCormack Oh like yeah, it’s just like anything. I suppose we’re always sceptical but. But yeah, I just say it’s really good. They’re helpful and you know just jump in and have a go because you sit there and hum and hah. You’ll never do anything like I’ve done for over 10 years and I had enough of that and I just did it. George Markoski Yeah, you did, which is good. So you’re glad you started? Jay McCormack Yeah, Yep. Bernadine McCormack (1080p).mp4 And the results speak for themselves, like. Bernadine McCormack So lucky that we started it before anything ever happened. Because we never thought Jay was gonna have a stroke. No. George Markoski And the thing is, I mean, you know, you made over $500,000 in three years. Could you say how much, how long would it take you to save that sort of money? Bernadine McCormack Never. Never save that. Jay McCormack Never. Because I was hopeless of saving anything. George Markoski There you go. And that’s the most people. And that’s the amazing thing that you could create in three years what a lot of people can’t create in a lifetime. And your asset is just going to grow and compound year after year. And not only is it going to be good for the both of you, but also for your kids. Bernadine McCormack (1080p).mp4 Yeah. And we have three. So they’re like, oh, we can take one each. I’m like, no,. George Markoski Look, when they get old enough, we can get them on the programme. We’ll help them as well, right? Bernadine McCormack Yeah, well, they’re 21, 19 and 15 now, so. The 21. George Markoski Okay, well, the 21, 19 year old, I think it’s time you had a chat to them about that. Yeah, I know a lot of people on our programme have enrolled their kids and have done really well. Because what’s happened, what’s happening now is there’s a thing called the bank of Mum and dad. Bernadine McCormack We know that one. George Markoski You know that one. Of course you do. Now, there’s different ways you can help your children, right? And some people, what they do is they buy a property for their children. I’m against that. Personally. I don’t think it’s a good way to do it. I personally think the best way to help your children is to get. Get them to do the work so they can do the learning. Because it’s not about what you get, it’s who you become that matters. And what a lot of people are doing is saying, okay, we’ll help you get into the programme and we’ll give you the equity, but you have to get the loan and you have to get the property. Right. That works well. George Markoski And considering their parents have already got $500,000 equity, shouldn’t be too hard. There you go. Bernadine McCormack (1080p).mp4 We need to chat to our eldest. George Markoski She’s might be worthwhile. Maybe you should bring him to Queensland in October. Jay McCormack Yeah, maybe. George Markoski Yes. So look, just wanted to say I really appreciate both of you and what I got to say is, you know, you join the programme, you’re decisive, you followed your coach’s direction, did all the work, got into property, and now you’re reaping the rewards and you’re just at the beginning of your journey and You’ve already done really well. I mean, most people don’t make that much out of property in the first three years of their property journey. So you’ve done very well. So thank you for being part of our community. Bernadine McCormack Yeah, thank you, George. George Markoski No worries. You’re welcome. Okay, now I’ve got Jeff coming on. Jeff, how are you? Okay, I can’t hear you because you’re on mute. Jeff Bennett Here we go. I’m back. George Markoski (1080p).mp4 Here we go. Jeff, how are you? Good to see you. Jeff Bennett Yeah, fantastic. So great to hear from Jay and Bernadine there. It’s always the good news stories keep coming out of Positive Property. George Markoski Yeah, look, that’s a pretty awesome story. And the timing worked really well, which was great. Jeff Bennett Can I just make a comment on that? That resonated with me during, like, listening to that. Obviously there’s been an interruption to their life. It’s really upended absolutely everything. But you mentioned that you’ve got it in there on two properties. And first of all, sorry, just by way of introduction, I’m Jeff Bennett from super Strategies. I’m the para-planner here at super Strategies. We always do a disclaimer before we speak that, look, this isn’t personal advice. I’m not giving personal advice to you. It’s just going to be factual information. But people will often say to me, what do I need to retire? And it’s always a fantastic question that everyone always wants to know exactly how much they need before they retire. Jeff Bennett It’s always really difficult to predict, particularly when our life savings has turned up in these schemes that we call like a superannuation fund. Jeff Bennett And they always seem to be changing the rules on those things. But the way that I have previously spoken to Positive Property clients is that if you’ve got two properties, let’s say you’re a mum and dad, you’ve paid off your mortgage and you’ve got two investment properties. That is effectively an income stream for you in perpetuity and completely different to the way that we’re taught by these large corporatized institutions which are around superannuation, where you build up an amount of wealth and then you begin a process of depleting your financial resources. It’s a pretty scary way to retire. Jeff Bennett But I’ve always noticed that there’s been one common metric that seems to have gone for the last 40, maybe 50 years, and that is that ordinary time earnings always seems to be roughly a third of that is like the income stream (1080p).mp4 that you would receive from a rental property. And if you just Understand this. Let’s maybe just throw out some very round numbers. Say the average Australian, it might be 100,000. I think it’s a little bit more than that, but let’s just use some round numbers. Say in Australia, the average salary might. Might be $100,000. And let’s just say that the average rent might be $600 a week. So what we do is we then multiply out what revenue that is over the course of 12 months. Jeff Bennett So we’ve got a little over $30,000. So there’s $30,000. Jeff Bennett Remember, if you’re retired and you paid off your mortgage, there’s no rent, there’s no mortgage. Typically, the way we split a salary in Australia today is 30% rental mortgage, 30% living costs and 30% tax. That’s kind of how your salary, if then your living expenses to live like an ordinary Australian today, comfortably just an average Australian, you’ve got $30,000 there that you need to get from somewhere. And so you’re locking in is protected against inflation because inflation goes up. Well, you know, we put the rent up, so we’ve got that. And if you’re a couple, I mean, there are synergies living as a couple, but if you’ve got two of those, we’ve got $60,000 that’s coming in, so that’s $60,000 a year, no tax, no mortgage that we’re paying out. Jeff Bennett So it’s a way that I just talk to people about those sorts of things and we come back to Jay and Bernadine. Imagine a situation where they hadn’t locked in on those prices that are now. I mean, everyone’s trying to get the prices that they paid three years ago, everyone’s trying to get in on that, but they’ve got two income streams locked in perpetuity. So they’re already on the train and they’re already sort of got that, which is effectively a retirement strategy of sorts that they have in play, whereby the feature of this is not actually in the living, I’m sorry to say, it’s actually in the dying. If you can live off the revenue of those assets and achieve your end goal where it sustained you in your life. Jeff Bennett Well, everyone else has spent and is dying with their last $20 from their life savings, which is superannuation. Well, they’re handing down to their beneficiaries capital appreciating assets. They’re also generating income. So it’s, you know, it’s a pretty compelling argument that Jay and Bernadine. George Markoski Absolutely. What you’re saying, what you’re saying about comparing the drawdown method to the investment and living off the rent method is two different worlds apart, isn’t it? I mean, you get $2 million in super and then every year you draw down, you’ve only got a certain amount of time to live. Now, the fact of it is, Australia, the average Australian lives to what, 84.7 years last I checked, which is a lot higher than America. Interesting enough, we’re one of the highest countries, but that’s going to change. The next five or 10 years we’re going to be living a lot longer and that’s going to be 94,100, 410 years before we know it. And therefore you need a lot longer. George Markoski So the old super strategy of drawing down is going to work really poorly with longevity, escape velocity, us living longer. (1080p).mp4 George Markoski And the asset of having a property going up and your rent going up every year is actually beautifully designed for us living longer, isn’t it? Jeff Bennett It is. Drawing down on that model suits one group of people and that is the large institutionalised superannuation companies that are in control of your money. So that’s essentially who it suits. George Markoski That’s the people that love it. Correct? Jeff Bennett Yeah, exactly right. And I can tell you right now, I speak to a lot of people who retired probably about five years ago, who thought they had all the money in the world to sustain them through to their end of their life. And with the inflation that’s gone on in the last five years, just the last five years, they are petrified, they are terrified that they haven’t actually got enough money to sustain them. Whereas by comparison, if you have investment property, you open the page of whatever state newspaper you have got and the front page it says we’ve got an inflation crisis. Guess what’s on page two? Got a rental crisis and property going up. The thing is, the landlords never miss out. They never miss out. Jeff Bennett Unapologetically they say, well, hang on, this is market rent. Jeff Bennett I’m not going to give a discount to my tenant. If they move out of here, they’re going to go and pay more somewhere else. I’m just going to get what is fair value to me as a result of my shrewd investments over a period of time. George Markoski Jeff, you’ve just nailed it. What you’re saying is property is inflation. (1080p).mp4 Jeff Bennett Proof, it’s a, it’s protect. We say it’s not inflation proof, we never say anything price. But it’s protected against inflation by its built in mechanism. George Markoski Built in mechanism that inflation actually inflates property because it’s A hard asset. Right. And when you’re drawing down on super, it’s a soft asset. And that’s actually that shrinks because I remember back in 2008 during the GFC a lot of people that were planning on retiring lost 50% of their retirement funds overnight. Jeff Bennett Yeah, don’t worry about other people. I did. I lost 50% overnight. And you know what happened? Which was a rude thing that I discovered later on because I was in a high growth fund, I was young enough to be able to make it back. But what was rude to me was that the superannuation company that I was with, again a large corporatized superannuation entity, they had written in the fine print that they got a performance bonus if my fund achieved greater than. So it was like 15% growth in a year. Well then they had these levies that they could charge. The arse absolutely dropped out of it the next year. It made up money and they went and took all up. Jeff Bennett Was probably about $12,000 that they pinned me and I was a performance. George Markoski Bonus on getting your money to come back to where it was. Jeff Bennett Yeah, exactly. I rang him up, I said well did you give me money when you lost it? Like did you say oh well sorry, we performed really poorly, here’s a whole lot. But the money the ass dropped out of, it went down and then when it came back on the other side, they just went and started carte blanche taking out massive parcels of. And the average Australian only spends nine minutes a year looking at their superannuation statements. So if you think it’s not happening to you, get invested and get involved in going through the fine print. Don’t look at the fees that you get charged on the front page of your statement. Jeff Bennett Go to about page 9 or 10 where most Australians have already opted out before you start getting this real detail about how much money they make from you. George Markoski (1080p).mp4 Look, the fact of it is everyone should be getting this super audited by an expert like yourself. Also the other thing is you look at Jay with his industry fund, he was underfunded when it comes to insurance. Fortunately he set up an SMSF and got the proper insurances when he did that. Which would have made a massive difference because imagine if that didn’t happen. Not only then you’d get less insurance. So that’s the other thing as well, getting the insurance. Right. Yep, yep. Jeff Bennett Do you mind if I just jump in there? Because I think it’s a really important thing for the Positive Property community to understand. You are given insurance in your superannuation. If you’re part of a large fund. You’re given it as a marketing ploy. You do not actually own a policy. In your superannuation fund. It’s what they call group insurance. It is owned by the company, the trustees of the company that you are with. And what will happen? I’m not suggesting this might happen. What will happen, they call it underwriting. When something happens like unfortunately has happened to Jay, that will go. Not in Jay’s instance, because it sounds like he’s been medically underwritten at the time of taking out the policy, completely different. Jeff Bennett But if he was in his old fund and he went and presented himself, that would go through Jay’s history and see if there’s any medical way that they didn’t have to pay that. Because the obligation is on Jay and it’s. The obligation is on every single person that’s here that is with it to actually give disclosure about things that you might think are quite trivial, but that process of updating them constantly. But they will get your medical record. George Markoski Insurance companies, they don’t like paying out. They don’t like paying it at all. And I know because we recently Christina went to hospital and I spent $15,000 and the insurance company sent US$100 out of goodwill and I didn’t accept it. I said, not going to happen with me. Like, they’re going to have to pay up. But that’s unfortunately the way it works. Now, there’s a lot of big companies that make money out of super. In Australia, yeah, we’ve got one of the biggest funds in the world. Was it $1.7 trillion or something like that? Jeff Bennett There’s a number of different types of superannuation. So we’ve got retail superannuation funds. They unapologetically get out of bed and put down and say, hey, we’re going to work today to make money. Okay? So I think that they’re probably the most scrupulous of the types of. They have the most values. They look at least they tell you, hey, we’re here to make money. There are other funds that I’m a little bit more sceptical of, and this is only my opinion, but they say where the industry funds and compare the pair and they say, we are not-for-profit. Let me tell you what a not-for-profit is. A not-for-profit is a company structure. It’s a type of company structure that does not have to pay profits back to shareholders. (1080p).mp4 Jeff Bennett And then you’ll hear them say things like, we give all of the benefits to our members. However A privately run share-driven board directed company is responsible for its own efficiencies and effectiveness over a period of time. These industry funds which if you can Google it, you will find out for yourself, there’s very large union control that influences the decisions. There’s a lot of talk and scepticism about the fact that there is a lot of former Labor Party politicians who have found themselves in very cushy jobs industry super funds. Jeff Bennett It’s unfair of me to say that without giving a reference, but Wayne Swan who is the current president of the Australian Labor Party at the national level he also happens to carry a role of chairman for Cbus super, which is the union superannuation company. Jeff Bennett I think that’s a conflict of interest because there are allegations about very strong donations to particular political parties by Cbus it controls. To give you an idea of how much money and look, this isn’t a political discussion, okay? I don’t care who you vote for. It’s about how you want your wealth managed. But they say that they’re not-for-profit but they have a great big bucket of cash that they hold back for what they call the betterment of the fund. Who controls that money? How much do you think is an appropriate amount of money to retain in that fund for the betterment of the fund? If you do some investigation into it, you’ll find it’s an extraordinary amount of money. Total money in control of Cbus super is $105 billion. Jeff Bennett To give you an idea, the Labor Party’s current stance about Gina Rinehart is oh, she’s an absolute billionaire. She controls her wealth around about $25 billion. So it’s four times that under the control of a company who’s managing director happens to also be the president. Going off on tangents about the politics. But what I ask people is to be sceptical and curious about where your money is, who is in control of that money and follow the money trail. They deliver financial reports. Read them. I’ve read them. Go and be interested, be sceptical and be curious about where your wealth is and what our clients tell us. We manage more than a thousand self managed superannuation companies. Jeff Bennett And what our clients tell us is I would prefer to drive past a property somewhere and say that is my superannuation. I understand it. Jeff Bennett There are people in there who pay me rent. I’m completely comfortable with that strategy. Over and above a strategy that has a rice bubble divided by a cornflake and so much what I believe is misrepresentation if you don’t believe you’ve been misrepresented, have a look at how much they tell your fees are on the front page. They’ll call it administration fees. But Australians aren’t engaged. They just think that’s their fees and then go much further down and you’ll find that there are some thousands of dollars and if there’s two of you, well then you’re both paying that in your superannuation. I am passionate about it. Jeff Bennett I do get upset about it because I see everyday Australians, you know, you might, between the two of you have $250,000 each, you know, and that seems like a lot of money. (1080p).mp4 Jeff Bennett Maybe you haven’t maybe got $300,000 and you’re passing someone else where together they’ve got $300,000, that’s $600,000 just passed each other in the street. The amount of money that we’re talking about is spectacular. It’s huge. And they want to control it. George Markoski Yes. So Australian superannuation as a whole is a, is multi trillion dollars worth. And yeah, now recently the four and a half trillion dollars, it’s a lot of money. One of the biggest super funds in the world. Now such a big fund is going to have a lot of eyes looking at it, going, hey, we’d love to control that. And the government recently with the Greens, because the Greens wanted this for some reason they didn’t want people to be able to borrow money in soup to buy property. Now this got me thinking because if someone buys a property one, I think it’s a good thing because we’re helping the rental crisis, right? And we’re doing that. George Markoski But no one really, there’s no big company that makes a lot of money out of it. There’s no big property industry as a whole. George Markoski But if you look at super funds, they’re big business, they’re worth a lot of money and they’ve been losing a lot of clients, leaving them, setting up an SMSF and investing in property. Right. They’ve been losing money now. Jeff Bennett Yes. George Markoski I don’t know. Do you think maybe they went to the Greens, gave him a bit of money and said, look, stop people from borrowing money in super so we can get more profit? Not quite like that, but something like that. Jeff Bennett Look, I can speak based on my personal opinion. I think that there is too much control and influence. I don’t understand, don’t purport to understand all of it, but I can’t speak. See that there is clear transparency by the union (1080p).mp4 controlled superannuation funds which are Essentially industry funds. I do see there are a lot of former Labor politicians who have landed very cushy jobs in a superannuation. I don’t quite understand what the qualifications that they have that make them so in their roles. I. You know, an example. It’s unfair unless I give you an example. Bill Shorten was a former politician. His wife has a job, a very senior role, in superannuation. Her qualifications are a media and communications. She might have subsequently got more qualifications, I don’t know. Jeff Bennett But I was quite perplexed to understand that Bill Shorten’s wife is involved in superannuation. George Markoski Yes. Now that smells a bit funny because you look at American politics, right? Many politicians in America end up getting jobs in pharmaceutical companies and military industrial complex companies after they finish in politics, right? And it’s sort of like they voted their way and that’s their way of rewarding them by giving him lots of money in a beautiful job. And now in Australia we don’t have that, but we’ve got superannuation instead. And that’s what’s happening. Jeff Bennett Yeah, that’s right. And look, it’s. I just. I don’t have anything that I can pinpoint on someone and say, look, you are ripping off. There will be many stories of justification for this. But look, if it. The old adage, if it looks like a duck and it walks like a duck, you know, it’s just. It’s not. And there isn’t, because they’re not privately owned companies. There doesn’t appear to seem the same amount of rigour around compliance and governance. If so many people from a particular former political party are able to get paying jobs, it’s like a soft landing ground to me, a soft landing ground into your superannuation. And people are completely oblivious to the fact that these very large superannuation companies have that union level of control. Jeff Bennett They always seem to have the biggest buildings in every capital city that I ever go to. They’re all full of people and they’ve all got all these executives that they slap on the back every year and pay them a stipend for out of your money. Then they have this big bucket of money that they call for the betterment of the fund. You will be very surprised if you find out how big that is. And that is what I understand as a metaphor in place of profit. So they provision for profit in this big bucket that they call for the betterment of the fund. Jeff Bennett And then after that they’re going to have a chat about what they’re going to Give to all of your community members in their superannuation and they don’t need to give you the rest, they only need to give you enough to keep you with them over a period of time. George Markoski (1080p).mp4 Okay, so let’s talk about the facts. Now the deadline is over and you literally cannot borrow money to buy a property in super since what, 10th of August or 12th of August, something like that. Recently? Just the last few days. Jeff Bennett Yes. You need to have entered into an arrangement that is a contract prior to the 10th of August. That’s correct. George Markoski Right. So the 10th of August has passed. So now no super funds can borrow money for super anymore. The ones that got a signed contract before the 10th of August, they’re going to be fine. Everyone else going forward, you just cannot do this anymore. In Australia, if the liberals get in, do you think there’s any do. Would they want to change this or repeal it or do you think there’s no one really wants to do this. I’m just curious about that. Jeff Bennett Again, talking from my personal opinion, I believe that it needs to be changed. Needs to be changed. Just from an outcomes perspective. I cannot understand how they would say, we know that this builds brand new property every single year and they need more property built every single year and they’re actually stopping it. It’s overwhelming, it’s alarming to understand that their remit is to create a solution to this housing crisis that exists in Australia today. George Markoski But they’re making it worse. Jeff Bennett They are making it worse. George Markoski The government has consistently made the housing crisis worse time and time again. They always say we’re going (1080p).mp4 to fix it and then everything they does the opposite. It’s like they’re saying one thing and doing the opposite. It’s almost like they’re manufacturing this crisis, they’re creating it because you know the 5% deposit scheme that made it worse. Increasing immigration made it worse. Stopping borrowing and super made it worse. The Labor government is consistently destroying the property market and really restricting supply and creating more demand. So great for your property investor, great if you want to push the market up, but that’s it. George Markoski And now obviously the market has been affected from all the CGT, the negative gearing and everything else like that and people reposition and a lot of people are scared. George Markoski But what’s happening is those properties that were like $3 million or $4 million dollars where if you were a, a specialist doctor, a brain surgeon and you’re making 3 million a year and you need a massive tax deduction, you buy a three million dollar property, negative gear and you Getting a massive tax deduction. They can’t do that anymore. So those properties that were really big, awesome tax deductions are finished now because the fact of it is people earning big dollars, they don’t want to go around buying 20 properties worth $800,000 where they can just buy a couple worth three or four miles, just easier to manage, you know what I mean? George Markoski But that market’s finished now and it’s not going to be easy, it’s going to be very expensive and it’s going to drop. George Markoski And the fact of it is a lot of these FOMO properties that people paying a lot of money for are going to drop. So people asking questions. I’m going to go through some questions now. I’m with Jeff with super Strategies. Excellent. From Jordan. So can we still buy property in SMSF? Yes, we can. You can still buy property in SMSF. And Jeff and I are going to talk about a few different ways we can do this anyway, which is going to be great. So the fact of it is you can. What we’re going to do is when we go to our private group, we’re going to talk about the strategy we’re using to buy property in super and help you do this so it’s not all lost. George Markoski It’s going to make it more difficult. George Markoski It is more difficult, it’s harder, but we’re going to do this. So we’re going to help our members get property in super. That’s what Jeff’s doing. This behind the scenes, Jeff has been working hard, doing different things. There’s a lot of new things coming out at the moment, new products. Jeff has got two really good ways of doing it which I’m going to talk about with our clients. And we’ve got a third one that could be coming in the future which we’ll discuss in private. So that’s what’s happening. Nick said maybe Labor should use $1 trillion of that super profit to pay off current government debt. Jeff Bennett Just to clarify that it’s not $1 trillion profit that’s going, it’s $1 trillion dollars in total assets. If you’re. It’s not the government’s money, it’s your money that’s in superannuation that they’re counting as, but the government. There has been discussions about the government actually getting greater good. They see it and they need it. Believe you me, spending is like heroin to them. George Markoski (1080p).mp4 And yeah, look, I agree. They’ve got their eyes on our super and even though they created super to help people self retire, they started putting rules on it. They started taxing people that have got too much money in super, which is just totally against the grain. They made it harder to put money in super. They’re taxing you more. Twenty years ago, super was actually an amazing vehicle. It was great. I use super because you could actually contribute with zero tax and pull it out at zero tax. 20 Years ago. George Markoski Yeah, it was amazing. Jeff Bennett Not anymore. Jay McCormack Yep. I actually, I actually got a million dollars tax free in super one year back in the 90s. Jeff Bennett Well done. George Markoski Yeah, pretty cool. It took me a tax lawyer to work it out but you know, there you go. Right. So back in the day I love (1080p).mp4 super, but now I don’t like it so much because they keep restricting it more and more. And really at the end of the day the government should be encouraging people to self retire. Right? Jeff Bennett Yeah. That’s what it’s for. That’s. George Markoski Yes. Jeff Bennett To take the weight off the government and welfare and we. So I just want to clarify that point bit in that question. That said it’s not $1 trillion dollars there that they’re making in profit. It’s that’s the actual amount. That’s the total amount of stored super. But they are, the large companies are making money from your money. George Markoski There’s, it’s a big fund. And when there’s so much money concentrated in one vehicle, there’s always going to be a lot of people their eyes on it thinking, hey, how do we get control of this? Because there’s so much money. I mean there’s trillions of dollars there. There’s a lot of money there. There’s a lot of money. And that’s the thing. So look, this is what we’re gonna do. I want to discuss with our group how we’re gonna help them get super. And this is gonna be only for our private group. So the public group. Thank you for watching. I really appreciate you. I’m gonna be here next Thursday night same and look forward to seeing you. George Markoski And now we’re going to switch off the public feed and go in our private group. (1080p).mp4