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Trustees cautioned on property market prices

With the year-long boom in residential real estate effectively over, SMSF property investors shouldn’t expect all future property purchases to increase in value, according to Propell National Valuers.

 

Propell National Valuers, national research manager and economist, Linda Phillips said the residential market is showing signs typical of an “end of an innings”.

“What it means is if an SMSF is going to buy into this market, [trustees] can’t just assume you can buy anything and it will go up in value,” she told SMSF Adviser.

“The market faces headwinds in the form of the traditionally slower winter months, the painful federal government Budget and rising unemployment”, she added.

With looming release of the Budget, Ms Phillips said she does not believe there will being any changes to rules concerning SMSF property investors.

“We did flag that they might remove negative gearing and [the government] did consider it, but it is too hard,” she said.

“However they might look at tightening the rules around negative gearing,” she added.

Trustees cautioned on property market prices
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Anonymous - Why does this get all the media attention when in reality it affects very few and the charges are minimal? How about reporting on all the ISA TPD.......
Anonymous - This got to be the smartest comment this century ?!....
nan - So what do you do if you are being ripped of and then can't afford the body corporate fees....
MarkL - The banks may not charge dead people any more ........... but they won't charge them any less either!....