Capital Shifts to Non Residential Real Estate and SMSF Property Investment
Speaking at the recent Australian Financial Review Property Summit, David Harrison, managing director at Charter Hall, one of Australia's largest commercial property fund managers, expects recent changes to tax concessions for residential property investors will drive more capital out of residential and into non-residential property.
At the same time, limited new supply is strengthening rental conditions for commercial landlords:
JLL and Morgan Stanley data shows very little new office supply is expected in Sydney’s CBD between 2027 and 2031
Shopping centre group Scentre reports its malls are already 99.8% full
As the investment landscape changes, some SMSF trustees may be weighing up whether commercial property should have a place in their investment strategy.
While SMSF borrowing for residential property is now restricted, you can still use limited recourse borrowing arrangements to acquire eligible commercial property, subject to SMSF and lending rules.
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Considering commercial property as part of your SMSF investment portfolio? Contact us on (07) 3726 1124 or email [email protected] to discuss SMSF loans for commercial property investment.
