Home
  • plan
  • Invest
  • Property
  • enquire now
  • Learn
Home
DPN
  • plan
  • Invest
  • Property
  • enquire now
  • Learn

Finance

SMSF changes could impact rental market

Changes to regulations surrounding self-managed super funds could ultimately impact on rental affordability, it has been claimed.

TAGS

Finance (117) / Expert (564)

Changes to regulations surrounding self-managed super funds could ultimately impact on rental affordability, it has been claimed.

The ATO has released a draft ruling opening up the use of SMSFs for renovations on existing properties. Previous ATO regulations restricted SMSFs from undertaking renovations on properties with either debt or surplus funds. The new ruling means SMSF members will be able to access their funds for improvements, provided they do not make any fundamental changes to the nature of the property and do not access any borrowings.

Accounting firm Chan & Naylor said the result would not only benefit SMSF members, but could lead to more rental availability and affordability nationwide as SMSF trustees increasingly put money into investment properties.

Chan & Naylor director Ken Raiss said the changes would allow “Mum and Dad” investors to see better returns by purchasing property and adding to its capital value. He said the ATO’s previous position had discouraged many SMSF trustees from delving into property investment, as the regulations surrounding property investment were too stringent.

“The lesson many astute investors learnt post-GFC is that property is a viable investment alternative to stocks and shares; However, we found many SMSF trustees unwilling to contend with existing policy as it disallowed investors to contribute to asset value without owning the property outright,” Raiss commented.

 


Follow us on Twitter for more news, tips and inspiration.
Like us on Facebook and Google+ explore our Pinterest boards.

Like this article or found it helpful? Share it!

Newsletter

Receive our articles directly to your inbox

Next article

SMSF trustees enjoy increased competition

Go to articles list

Programs

Work with us
Giving back
Become an affiliate
Refer a friend
Help desk
Property Management
Finance

Locations

Head office
Australia
Hong Kong
Singapore

Contacts

Toll free in Australia
P. 1300 723 318
Outside of Australia
P. +61 2 9525 2033

Social Media

Newsletter

Terms of use | Privacy policy | Guarantees

This information is provided by DPN Pty Ltd ABN: 94 630 700 186 Australian Credit Licence 514759. DPN Finance Pty Ltd is an authorised credit representative 504129 and related entity of DPN. Credit for Dream Big 100% Offset and Work Smart 100% Offset is provided by Adelaide Bank a division of Bendigo and Adelaide Bank Ltd, ABN 11 068 049 178 and Australian Credit Licence 237879. Casa Capace Operations Pty Ltd, NDIS provider number 4050038018 trading as Casa Capace.