Property types for a self-managed super fund

Discussion in 'Superannuation, SMSF & Personal Insurance' started by Whitecat, 19th Apr, 2024.

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  1. Whitecat

    Whitecat Well-Known Member

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    It seems to me that a good investment property type for an smsf would be something that is relatively high yield but still with land content for cgs (as there is no negative gearing but you can sell the property cgt free when you retire)

    so like a house with a granny flat or a block of units.

    Thoughts?
     
    Whitecat, 19th Apr, 2024
    #1
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  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Shops, offices or warehouses.
     
    Scott No Mates, 19th Apr, 2024
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  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    The assumption about land is false. The amount of land in a barangaroo towers apartment like this would be very small indeed. Property scarcity, uniqueness and demand is what adds value. Demand may be enhanced via yield but that doesnt raise its value. It may lower it. eg Buyers may not want a GF. Its like pools. Some people love them and others hate them. Do they add to value ? Sometimes.

    OK thats a exaggeration for a unique property but its common. Look at harbour front or beach front like say Palm Beach. If you want to buy in you NEED deep pockets. People will ignore the property build issues for the location and uniquness.

    Sydney’s latest $100m home sale in Crown’s One Barangaroo tower - realestate.com.au
     
    Paul@PAS, 26th Apr, 2024 at 9:58 AM
    #3