An SMSF can buy business real property and lease it to a member and the laws and processes are clear. The rent paid is classed as income from the investment rather than a contribution from the member.
In certain limited circumstances, especially relating to Business Real Property, it is possible for an SMSF to acquire property from a member but check the rules carefully to avoid penalties.
New technologies are transforming the property industry. While many have recognised this trend, they haven’t yet developed a business strategy based on this transformation.
Economic growth and interest rates affect housing prices, but political decisions around zoning, migration, and taxes are also strong influences. Overall, the current climate suggests a much slower growth in house prices.
Non-residential real estate performed strongly in 2017, but much of this return came from cap rate (yield) compression. Going forward, investors will need to focus more on income growth and sector allocation.
When it comes to company floats or IPOs, sellers know much more about the business than buyers, so before getting caught up in the euphoria of a new listing, consider what it is they know that you don’t.
The property market is far from homogeneous, and investors should consider different impacts on residential, office and retail sectors. Is Myer a bellwether for retail changes?
Want a city car space for $35,000? Property investors face a never-ending stream of costs, and while some are well-known, state government charges often fly under the radar until the bill comes in.
Institutional investors have little interest in investing in residential property due to the low yields and favourable taxation concessions offered to owner occupiers and retail investors.
A quick name-by-name summary from the latest round of A-REIT (listed property) results with most trusts doing well as management teams deliver on their strategies.
Centrelink’s ‘granny flat’ exceptions are designed to encourage people to stay out of supported care, but it’s important for welfare recipients to make the correct arrangements.
Should SMSFs invest in residential property, should they borrow to do it and what is the impact on housing affordability and market stability?
There is more to listed property than the top eight in the A-REIT Index with many strong performing smaller trusts outside the top 80% of the index, and other A-REITs not even included in the index.
The Budget incentives designed to increase housing affordability, especially for first home buyers, are minor steps in isolation, but they may encourage superannuation engagement and downsizing.