Raine & Horne offices in Sydney and the Hunter region are reporting self-managed super funds SMSFs) represent up to 50% of real estate sales in some markets.
“It’s fair to say that since the laws changed back in 2007, allowing self-managed super funds to borrow funds to acquire residential property, we’ve seen more DIY funds looking to secure housing assets in some markets across Australia,” said Angus Raine.
“I’d be urging more SMSFs to consider borrowing to buy a quality, well-located residential rental property because it can deliver long term capital growth and income, and using a DIY super structure, it’s possible to buy a house or apartment with pre-tax dollars.
“Furthermore, if the fund decides to sell the property in the pension phase it is capital gains tax free.
” Mr Raine also warned that buying a residential property through a SMSF is not for everyone.
“I’d urge investors to talk to an accountant and/or financial planner before making a decision to secure a property through a DIY super fund.”