NEWS

Investing in Self-Managed Superannuation Fund (SMSF) properties comes with a range of benefits that can significantly enhance your investment returns.

Here are six compelling reasons why SMSF property investment might be the perfect addition to your investment portfolio:

1. Enjoy 15% Income Tax Rate

One of the key attractions of investing in SMSF properties is the low income tax rate. Unlike personal income tax rates that can reach up to 45%, SMSFs benefit from a mere 15% income tax rate on investment property income. This substantially reduces the tax burden on your rental income, allowing you to retain more of your investment returns.

2. Benefit from a Minimal 10% Capital Gains Tax

Capital gains tax (CGT) can eat into your investment profits, but with SMSF properties, you'll enjoy a minimal 10% CGT rate. This favourable rate applies when you sell your SMSF investment property after holding it for more than 12 months.

3. Tax-Free Rental Income and Capital Gains in Retirement

The tax advantages of SMSF properties extend even further in retirement. Once you retire, both rental income and capital gains derived from your SMSF property investments become 100% tax-free.

4. Enjoy a 100% Tax Cut Post-Retirement

In addition to tax-free rental income and capital gains, post-retirement, you'll also benefit from a complete tax cut on these earnings. This ensures that your retirement income remains unaffected by tax obligations, allowing you to make the most of your SMSF property investments and maintain financial security throughout your retirement years.

5. Tax-Deductible Interest on Loans

Another significant advantage of investing in SMSF properties is the tax-deductible interest on loans. Any interest paid on loans used to finance SMSF property investments is tax-deductible, reducing your overall tax liability and increasing your investment's profitability.

6. Unlock Enhanced Buying Potential

With the capability to accommodate up to six members, your Self-Managed Superannuation Fund (SMSF) offers the opportunity to pool capital resources.

The 2032 Brisbane Olympics are expected to be a boon for Queensland's southeast real estate market, but with some interesting twists compared to past Games. 

Here's the breakdown:

Potential Price Rise: Prices are anticipated to climb in the lead-up to and after the Olympics, similar to what Sydney experienced in 2000.

Spread the Wealth: Unlike past Olympics concentrated in one city, Brisbane 2032 will utilize venues across southeast Queensland, including Gold Coast and Sunshine Coast. This means potential property value increases in those areas as well.

Infrastructure Boost: The Games are expected to trigger infrastructure upgrades in transportation, amenities, and services. This can further enhance property values in areas receiving these improvements.

Job Market Boom: The Olympics are projected to create a significant number of jobs, potentially boosting the housing market due to increased demand.

A Different Timeline: Brisbane has a longer lead time (11 years) compared to the typical 7 years. This could spread out the price increases over a longer period.

Focus on Existing Infrastructure: By leveraging existing facilities from the 2018 Commonwealth Games, Brisbane aims for a more cost-effective approach. This might moderate the overall price hikes compared to past Olympics requiring extensive new construction.

Not Guaranteed: While past Olympics often saw price surges, it's not a sure thing for Brisbane. Market conditions and other factors can influence the outcome.

Overall, the 2032 Olympics are a positive sign for Queensland's southeast real estate market, with potential benefits spreading beyond just Brisbane.

Gold Coast Property Market: A Tale of Two Cities

The Gold Coast property market is a story of contrasts. While some areas are experiencing a cooldown, others are still sizzling hot. Let's break down the latest updates:

Price Shifts:  

There's been a notable change in 14 Gold Coast suburbs, where median house prices have dipped. This suggests a potential slowdown after a two-year boom.

Hotspot Hangouts: 

But don't hit the brakes just yet!  Certain pockets remain on fire, with median house prices skyrocketing up to 50% in the last quarter – that's boom time alive and well!

Rental Rollercoaster:

Remember the FOMO frenzy that fueled the initial Gold Coast surge? It may have calmed down, but buckle up for rising rents. Experts predict they'll continue their upward climb.  In fact, since 2020, median rents have outpaced house price growth, increasing a significant 30% compared to a 20% rise in house prices.

Overall Outlook:  

Sales volume across the Gold Coast and Sunshine Coast has dipped over the past year. However, there's positive news – prices are showing signs of recovery. Both coastal markets have seen an increase of more than 2% in the last three months.

The Takeaway: 

The Gold Coast property market remains dynamic, with different areas experiencing varied trends.  Whether you're a buyer, seller, or investor, staying informed about these trends is key to navigating this exciting, yet complex, market.e.