Open for inspections are now once again permitted. It’s great news for Melbourne’s resurgent property market, as it continues to gather momentum into 2021 and rebound from COVID-19. It's also a timely moment to pay tribute to property industry workers and customers alike, and their ability to successfully overcome what’s been a very challenging year for Victorians.
Buy a property through a self-managed super fund (SMSF)?
There is now great scope to invest in residential property via a self-managed super fund (SMSF) using either cash in the fund and/or borrowings.
It is an opportunity that an increasing number of Australian investors are pursuing. As of March 2013 there was $17 billion invested in residential property via an SMSF.
It is critical that those considering the SMSF pathway act with utmost care. Super is the nest egg that most of us are relying on for a comfortable retirement.
Unfortunately, there are companies that are using the growing interest in SMSFs to market sub-investment grade property developments to the public. We're worried that many of these investors will suffer losses that could compromise the investor's retirement lifestyle.
Our most important message to clients is this: always ensure you invest in quality assets. Given the stakes at play when it comes to super, this advice is especially true. You just can't take a risk when it comes to retirement. It is also vital that any advice sought on establishing or using an existing SMSF to invest in property comes only from a holder of an Australian Financial Services licence.
So take the following two steps: first, engage a reputable, independent accountant or financial adviser to look at your specific circumstances and advise you on the merits of establishing an SMSF and using it to invest in residential property.
Second, if your reputable adviser gives you the green light to proceed, come to us at Wakelin Property Advisory for the specific purpose of selecting a quality property.
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