Law changes spur property investment plans

property/SMSFs/self-managed-superannuation-funds/interest-rates/trustee/

17 February 2009
| By Levy. Benjamin |

Real estate firm CB Richard Ellis (CBRE) is taking advantage of recent legislative changes allowing self-managed superannuation funds (SMSF) investors to borrow from their super to acquire property, unveiling plans to target potential SMSF property investors and direct investors.

CBRE's residential projects division has hired investment property specialist Barry Porter as its national manager, intermediary relationships, with the objective of establishing its financial planner distribution channel and targeting financial planning clients who want to buy residential investment properties.

“With the ability of SMSFs to now borrow under section 67(4A) of the Superannuation Industry Act, this is a logical path for us to take and we foresee exciting times ahead,” Porter said.

“We are in a fortunate position in having access to quality stock appropriate to SMSF trustee investment strategies and direct investors alike,” he said.

Property investors will be able to borrow using an instalment warrant structure, Porter said.

Despite a price contraction in most property markets, CBRE would focus on projects with strong investment fundamentals, Porter said.

Low residential vacancy rates and dropping interest rates make residential investment property attractive as an asset class, he said.

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