Property

Industrial and convenience retail are the real estate hot spots offering growth, solid and regular yield and capital security. Little wonder it is attracting SMSF investment – especially with lower interest rates beckoning.

While industrial remains the commercial property sweet spot, convenience retail, which is largely immune to e-commerce, is proving an excellent defensive asset.

Increasing e-commerce penetration, population growth and rising construction costs will ensure supply for this commercial real estate sector remains tight.

No different to the bond market, commercial property prices rise as interest rates fall. With growing expectations that the Reserve Bank will cut rates, self-funded retirees need to consider now whether they want a slice of this asset class.

Debt in retirement is often a poisoned chalice. So, a solution that allows people to tap into their home equity by selling a share of its future sale proceeds without incurring debt can be a viable option.

Despite new supply coming on to the market, economic tailwinds should continue to underpin this buoyant commercial property sector’s growth for the next decade.

Baby boomers have been the major beneficiaries of rising housing prices over the decades. That does not necessarily mean it’s a good investment decision for them to buy residential property as they near or begin retirement.

Laurence Parisi will build on more than two decades in real estate with listed and unlisted funds to grow funds under management and broaden the product offering.

Investors are cognisant of the capital gain and income property can deliver. But there’s a bonus in the form of a tax deferred component as part of their distributions that some might not realise.

The property market has defied rate hikes and inflation to post higher valuations in most capitals, but that’s not likely to last, according to SQM Research’s Louis Christopher, who predicts a second-half fall. It won’t distinguish between houses and units, and it will be worst where prices have risen most.

The ATO’s review of income tax returns show nine in 10 rental property owners are getting their return wrong. Property expense claims, as well as SMSF returns and crypto transactions, are all on the radar this year.

More cranes signal greater construction activity and point to a sound economic outlook. Property lender Thinktank examines the current skyline and what it means for the market.