subscribe to our newsletter sign up

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
nestegg logo
Promoted Content
Recommended by Spike Native Network
TimP - “You cannot legislate the poor into prosperity by legislating the wealthy out of prosperity. What one person receives without working for another.......
Chris - That last line is the best explanation of the Labour Governments approach to managing "our money" that I have ever heard...." Cutting the pie into.......
Anonymous - To complain that the tax cuts will negatively impact on future expenditure on education, where the more that has been spent on education the worse the.......
Ralph - How are they being "paid for it" by younger generations? They paid for it with the taxes they paid from a lifetime of working.....