Australian Taxation Office data show a significant increase in residential property assets held by SMSFs, from $10.825 billion in June 2009 to $14.868 billion in March 2012.
“It’s fair to say that since the laws changed back in 2007, allowing self-managed super funds to borrow funds to acquire residential property, we’ve seen more DIY funds looking to secure housing assets,” Raine & Horne chief executive Angus Raine said.
“I’d be urging more SMSFs to consider borrowing to buy quality, well-located residential rental property because it can deliver long-term capital growth and income, and using a DIY superstructure, it’s possible to buy a house or apartment with pre-tax dollars. Furthermore, if the fund decides to sell the property in the pension phase it is capital gains tax free.”
(Financial News, Smart Property Investment, November 2012 issue)