Australia’s rental marketplace has long had a reliance on small investors, but in recent years the number buying residential real estate in Brisbane’s inner city has been low. After the strong rental growth of 2006-2008 returns have leveled off and big capital gains aren’t considered a sure bet, at least in the short term. Finally the growing confidence from self-managed super funds may give investment property a much-needed new buyer group. One with a longer term view of returns.
Once considered an option only for the very rich, we’re recording more and more property sales to self-managed funds. These are often mums and dads with a decent but not massive sum in their funds, who are using the growing acceptance (and sometimes enthusiasm) from banks to fund a residential property purchase. Accountants and other advisers are learning more about the required structures, and despite tinkering from the government there’s increasing confidence in this as a way to leverage your retirement savings.
The set-up isn’t ridiculously expensive or time-consuming, the bank loan is limited-recourse, you can get some real diversity in your retirement fund and it gives you greater control over the asset’s management. Many of us know and trust real estate as an investment vehicle and directing some of this nation’s enormous superannuation reserves into housing can only be a good thing.
Worth a call to your adviser?