Investors turn to SMSFs

By Reporter 14 September 2012 | 1 minute read

Self Managed Super Funds (SMSFs) are attracting much investor attention; however it is commercial property that is seeing the most interest, according to sales results at one real estate office.

An increasing trend for investors purchasing commercial property through their SMSF has emerged, said Raine & Horne Commercial Brisbane North’s principal, Trent Bruce.

“We’ve definitely seen more investor sentiment enter the market, with a trend towards SMSFs, especially in the last six to nine months,” Mr Bruce said.

This may be a result of the different rules over commercial property that allow the SMSF owner to rent it themselves as a company.

“For many business owners, it can be a cheaper option to buy a commercial property and lease it back themselves, rather than to rent the space from a third party,” he said.

“The combination of low interest rates, softer rental yields and affordable commercial prices are encouraging small business owners and investors to seriously consider purchasing a commercial property.”

As commercial rental yields sit at 8.5 per cent in the current market, “it’s not hard to see why many investors are using their DIY super funds to maximise the strong returns,” he said.

Suburbs in industrial precincts, including Geebung, VirginiaVirginia, QLD Virginia, SA and Brendale have seen an increasing amount of interest.

Mr Bruce also indicated the suburbs of Stafford, Nundah and Chermside as “leasing hotspots”.

“In addition, suburbs in Brisbane’s outer north such as North Lakes are attracting a wide range of interest, and are expected to develop even more with the arrival of supermarket giant Costco and IKEA,” he said.

Investors turn to SMSFs
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