Self managed super funds may fund home improvement
This month may see the decision by the Australian Taxation Office (ATO) to allow Self ...
This month may see the decision by the Australian Taxation Office (ATO) to allow Self Managed Super Funds (SMSF) investors to renovate their investment properties through their Fund.
The money can’t be borrowed – it must be funded through the SMSF – and it can’t be used to change the fundamental use of the property, such as a house-to-apartment conversion.
It may increase the appeal of un-renovated properties, which tend to be less expensive that their renovated counterparts, with Australian Managed Super Funds investors taking a closer look at this market.
Whether this ruling does or doesn’t go through right now, it is recognition that people saving and planning for their financial future should have the opportunity to buy and improve an investment property’s value through renovations.
Buying real estate through SMSF is a growing trend in Australia according to ATO figures.
If a new ruling doesn’t come down this month, it is likely to stay on the ATO radar, and is yet another reason for investors to work with a real estate network that remains abreast of change and keeps them informed.