Buying property with
a SMSF
Like any good investment strategy, seeking the advice of someone who is an
expert in their field is crucial. So when trustees of SMSFs decide to buy a
property with the SMSF as part of their investment strategy, why do they
suddenly think they are an expert?
The first thing most people do is visit internet websites like "realestate.com.au"
or "Domain.com.au". They then search for a property which is close to home
because this is the property area they understand best. They don’t fully
understand what makes one property a better investment choice than another.
However, the end result can disappoint expectations. Not all property is the
same and not all investments in property are successful.
Spread your net wider
When viewing properties that are being sold by a local real estate agent, it
needs to be remembered that these agent’s primary job is to sell to you a
property they have listed on their books and at the highest possible sale
price for their vendor. Added to this, local real estate agent’s knowledge
is often “localised” an agent in Brisbane, for example, would probably not
be likely to encourage you to consider property in Melbourne – even though
it might be more suited to your SMSF investment strategy. In those
circumstances, it is highly unlikely that you would receive an unbiased
opinion and one that would most probably be limited to the agent’s local
knowledge.
Make a rational investment
decision
More than any other type of investment, property can be clouded by emotional
attachments. By adhering to a strict property selection process, you can
reduce the risk many investors face when making a financial decision of this
nature.
Evaluate every property on five key
criteria:
1. Strong research
2. Reputation
3. Price point
4. Ease of rent
5. The X Factor |
There is so much
information now available on the internet, how do you know what and where to
buy? Do you have the time to evaluate all of the information? Why is it, by
the time you see projects advertised on the internet the best properties are
already sold? They key is to buy them before they are advertised. How do you
do this?
The solution for you and your clients is a property service provider who
specialises in servicing the property needs of accountants and their SMSF
clients seeking well positioned investment property. These specialists have
direct relationships with developers enabling them to secure exclusive off
market property opportunities.
A professionally operated property service provider spends a considerable
amount of time looking at numerous properties across a broad cross section
of markets before they are satisfied that they are appropriate for clients.
A professionally operated property service provider often applies dedicated
teams who search for the best projects around the country and gain
third-party independent research to allow their clients to make educated and
informed decisions. It is worth investing time in these types of providers
before investing in your next property.
This article has been provided by Licensed Real Estate Agent Al Bhanji (CEO)
of Azure Property Group
www.azureproperty.com.au. Azure provides a total property solution for
accountants with SMSF clients that incorporate all of the property services
they require to be diligent and successful in buying property for SMSF’s.
Azure gives you the tools you need to meet – and exceed – your clients’
expectations at every stage of the property process.
Disclaimer:
The material should not be relied upon. Super Matters, any
Australian Member, any related entity of those persons, or any of their
officers employees or representatives, will not be liable for any loss or
damage arising out of or in connection with the material contained in this
publication. |
