So what is an SMSF and how does it work?
Plenty of us have heard of the term, but still perhaps need to do some googling on anything more than that! Super still tends to send plenty of us into that position where our head gets stuck in the sand, it's all to hard!
Well, let me make it all a little simpler and easier, for you!
According to the Switzer Broker website, where we gather a wealth of investor and market knowledge, John McGrath "is considered one of the most influential figures in the Australian property industry. As Chief Executive of McGrath Estate Agents, he took the company from a start-up in 1989 to one of Australia's most successful residential real estate groups, selling $3.25 billion in residential property in Sydney in FY09".
John gives his opinion this month on an investor surge generated by SMSF's, and is in line with Stuart's thoughts that there has been an increase in consumer confidence thanks to the change in government.
He said, "All in all, conditions are great for investors today and we’re seeing strong activity in many parts of the country".
Since 1999, Australians have been able to manage thier own super.
But it's only been since 2007 that we can buy real estate through it.
6 years in the property market is not a long time, but confidence in the idea, and the process, is growing steadily.
What do you think about buying property though your super? Would you?
John mentions that since 2012, when SMSF buyers were given the option to renovate their properties (as long as they don’t use borrowed funds to do it), investors have been enabled to "generate more wealth by purchasing original homes, renovating them to build new equity and leasing them for a higher amount".
He goes on to mention another interesting trend."While younger SMSF investors are focused purely on investment, many older investors are focused on buying a future retirement home.
This can be a good strategy when you’re five or ten years off retirement and you already know where you’d like to retire.Buy now, earn some rental income and move in later!"
Not a bad idea really!
This article, "SMSFs create investor surge" was published on Tuesday, September 10, 2013, on http://www.switzerbroker.com.au.
Click here to go to the full article on the Switzer broker website, and of course, call us today for more information on SMSF lending.. we're all over it!
(image courtesy of www.mybhr.com 17/09/2013)