Trustees overlooking commercial property

SMSF trustees often overlook commercial property as an investment, despite the residential property market being at risk of overheating.

 

Many investors with SMSFs automatically revert to residential property when considering property as an asset class and an investment option, said Ryan Banting, head of portfolio management, Australian Unity Real Estate Investment.

This is in spite of speculation in recent months that the residential property market is at risk of overheating, with Australian capital city prices in particular being over-inflated.

Mr Banting said now “may not be the right time” for SMSF trustees to invest in the residential property market.

“Investors may believe that commercial property isn’t suitable for an SMSF because of the size of investment required, the possible lack of liquidity and the difficulties in managing a commercial property as opposed to a residential property,” he said.

“Trustees who wish to include property exposure in their investment portfolios would do well to consider commercial property,” he added.

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