With recent uncertainty in the Australian and Global financial markets many people want to diversify their risk, and increase their yield on investment through property investment. In September 2007, the Federal Government made amendments and legislated through the Superannuation Industry (Supervision)
The SMSF segment presently represents about $286 billion in assets as at June 2007, around about 25% of the total Superannuation Assets. Presently there is approximately 375,000 SMSF in place with a projection of that doubling by 2012 due to these changes in the SIS Act.
The old rules meant you had to buy the property outright in your fund, whereas now you can borrow anywhere from 60% to 75% of the value of the property you are looking at purchasing. Please also note that up to 4 individuals, not 5, can group their super funds together to make a property purchase.
Property Market update:
Super ratings the super information agency says that superannuation funds are set to record this financial year their biggest ever loss since records began 10 years ago. On the other hand BIS Shrapnel Australia's most trusted source of information for the property industry is forecasting capital growth for property over the next three years to be around 18%, with Sydney's median house price to go from $584,000 to $650,000. Property analysts are also predicting that rents will rise 50% in the next 4 years, with vacancy rates in NSW at a record 30 year low being just .8%.
BIS Shrapnel's report also says that Australia's population is expected to grow by 1.5% through 2008/2009 its highest level since the 1980s. BIS says we are experiencing record net overseas migration which is underpinning what is already strong underlying demand for housing but our main problem is that we are not building enough houses for upcoming demand.
At PK Property we are presently experiencing a real resurgence in the property investment(http://www.pkproperty.com.au/
So if you are looking at upgrading or wanting to buy an investment property either in your self managed super fund or out of your fund, I do believe there is a window of opportunity for great purchasing up until Christmas.
Please email peter@pkproperty.com.au today should you want to make an appointment with our team to talk further on how you can benefit from these new superannuation changes, or just for a general chat on your property requirements.
Disclaimer: This information is provided as a general guide only and is not advice or a recommendation to enter into any transaction, and is subject to the final documentation. This information has been obtained from sources that PK Property Search & Negotiators believed to be reliable and PK Property Search & Negotiators makes no representations as to, and accepts no responsibility or liability for, the accuracy or completeness of the information. PK Property Search & Negotiators and its affiliates do not purport to be legal, tax, accounting, financial or regulatory advisors in any jurisdiction. PK Property Search & Negotiators acts neither as an adviser to, nor owes any fiduciary duty to any recipient of this information. Prior to entering into any proposed transaction, the recipient should independently evaluate the risks of such a transaction and the recipient's ability to assume such risks from their adviser.PK Property Search and Negotiators strongly suggests before you enter into any property purchase through your SMSF that you consult your accountant beforehand.
Contact PK Property Search & Negotiators Pty Ltd:
North Shore & Northern Beaches Office:
Cremorne Town Centre, Suite 13, Level 1, 287 Military Rd, Cremorne NSW 2090 Australia
Phone +61 (0)2 9904 3444, Fax +61 (0)2 9904 3555.
City - Eastern Suburbs - Inner West Office:
Australia Square, Level 5, 95 Pitt St, Sydney NSW 2000 Australia
Phone: +61 (0)2 8249 8180, Fax +61 (0)2 9904 3555
PO Box 112 Cremorne NSW 2090
Phone +61 (0)2 9904 3444
Fax +61 (0)2 9904 3555
Mobile +61 (0)419 200 018
Email enquiries@pkproperty.com.au
http://www.pkproperty.com.au/
