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Conditions ‘ripe’ for SMSFs to buy commercial

Conditions ‘ripe’ for SMSFs to buy commercial

For Australian business owners with SMSFs, now could be a good time to start thinking about acquiring their premises, it has been suggested.

According to commercial lender Thinktank Group’s Per Amundsen, the financial benefits that accompany commercial property ownership include tax minimisation and wealth creation.

Additionally, now could be a good time to buy.

“The secondary market for commercial property can be closely linked to the primary market,” he explained.

“Rising prices in the latter, in many circumstances, will have a flow-on effect on the former. In particular, tighter vacancy rates in Sydney and Melbourne are pushing prices up across both primary and secondary markets.”

Property Council of Australia figures show an improvement across all CBD markets’ vacancy rates, thanks to demand, with Sydney and Melbourne tipped to reach vacancy rates below 4 per cent.

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“Falling CBD vacancy rates help underpin commercial property prices right across the market. There’s a ripple effect flowing out from this CBD activity, so for SMEs it’s an ideal opportunity to either sell their commercial premises to their SMSF or use their fund to acquire premises,” Mr Amundsen said.

Continuing, he argued similar opportunities are in store for SMEs in the manufacturing and construction sectors with the industrial property market reaping the benefits of a stronger manufacturing sector.

“Manufacturing continues to benefit from local apartment and infrastructure projects that are still boosting demand, with 37 per cent of businesses expecting the general business environment to strengthen over the next six months,” Mr Amundsen said.

“This paints a positive picture for industrial property, with the commercial and industrial real estate agent Savills highlighting stable rental levels across the country (except Perth), but with yields continuing to tighten everywhere (including Perth).”

 

Conditions ‘ripe’ for SMSFs to buy commercial
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