Powered by momentummedia
nestegg logo
Powered by momentummedia
Powered by momentummedia
nestegg logo
nestegg logo

 

 

Invest

Researcher offers tips for SMSF property investment

By Staff Reporter
  • June 30 2014
  • Share

Invest

Researcher offers tips for SMSF property investment

By Staff Reporter
June 30 2014

Melbourne-based property research advisers Nyko Property have outlined factors that SMSF trustees should consider to maximise their property investment.

Researcher offers tips for SMSF property investment

author image
By Staff Reporter
  • June 30 2014
  • Share

 

Bill Nikolouzakis, founding director of Nyko Property, said SMSF investors should be looking for a property with relatively low maintenance requirements.

 “The tax advantages of an SMSF investing in property are minimal and the laws governing SMSFs do not allow extensive renovations that change the characteristics of the property,” he told nestegg.com.au’s sister publication ifa.

Mr Nikolouzakis said it is also critical to ensure the property will generate a strong yield of at least four per cent, especially if the trustee is servicing a debt.

“This does not mean you ignore its growth aspects, the main factor deciding the success of a property investment; it’s just that yield is more important when bought by an SMSF,” he said.

Advertisement
Advertisement

Mr Nikolouzakis also pointed out that while SMSF investment in residential property increased 17.2 per cent in the 12 months to March 2014, this growth is not necessarily “a disaster waiting to happen”.

“It comprises only 3.7 per cent of total SMSF assets of $558.5 billion. Of total SMSF investment in property, it is non-residential property that makes up 77 per cent of total property investment, at $68.4 billion,” Mr Nikolouzakis said.

“Borrowings, too, remain negligible at $2.8 billion or 0.5 per cent of all SMSF assets.

“When I see these numbers I draw a completely different conclusion. Quite clearly, a growing number of SMSF members want to invest in residential property. They probably know that historically it’s been a sound investment.”

Researcher offers tips for SMSF property investment
default
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article

more on this topic

more on this topic

From the web

Recommended by Spike Native Network

More articles

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.