The strategy of purchasing commercial property in your SMSF can provide amazing tax and wealth creation benefits to your investment portfolio. However if holding commercial property directly is difficult due to scale, liquidity and a lack of real understanding of the commercial property market place there are options.
Recent comments from Australian Unity Real Estate Investment, a listed and unlisted property trust manager, highlighted some of the options avaiable to SMSF Trustees.
Trustees can consider pooled investment vehicles, such as listed and unlisted property trusts, which have performed well in recent years. Unlisted property trusts have achieved yields of around 7 per cent over the past two years and been immune from declining interest rates and share market volatility.
While the residential property market was at risk of overheating, many SMSF trustees overlooked the benefits of commercial property as an option for smaller investors who wished to diversify their SMSF portfolio into property.
SMSF trustees can benefit from the professional funds management applied by the pooled vehicles, as well as from the smaller capital requirement for buy-in and liquidity offered through regular withdrawal facilities.
If you would like to know more about how property, whether residential or commercial, can be purchased in a SMSF, please call us today on 07 3421 0100 or contact us www.mywealthcare.com.au