Traditionally, Self Managed Super Funds (SMSFs) have been unable to borrow money for investment property purposes. However, recent changes to the legislation have opened the door for superannuation funds to borrow money provided that certain requirements are satisfied.

The prospect of borrowing within an SMSF has sparked significant interest. The significant power of gearing is recognized by many advisors and investors alike, so the ability to leverage the growth of an individual’s retirement savings is naturally appealing.

The ATO has recently released guidance regarding application of the new rules. The guidance has provided certainty in relation to a number of matters, however the ATO has flagged a number of issues that are still under consideration. Before launching into these arrangements, it is important that people understand the basic concept underlying the borrowing structure.

While the new SMSF borrowing rules have opened up a world of possibilities for owners, it is important that people are fully aware of the terms and conditions of the borrowing arrangement before they sign on the dotted line.

It is also critical that people ensure that their SMSFs investment strategy, allow for the fund to enter into this type of borrowing arrangement.

Finally, people contemplating strategies involving limited resource borrowing should speak to a qualified advisor to ensure that the strategy is appropriate for their particular circumstances, and any proposed structure complies with the new laws. Once this has been determined we can then help you start looking for your investment property.

When asked to write the opinion column this week I have questioned my topic and the authority that I have to write it.......The global economy has had a significant impact on the Australian economy which infiltrates into Albany. What I do see is that the change in the financial and property market is not discriminating on a specific section of our community, we have all been impacted.

Those who have made good, sound financial decisions in the past, advocate that now is the time to purchase as much property as possible. With interest rates reducing in order to realign our economy and share market falling drastically perhaps their advice is extremely accurate.

Buyer enquiry is certainly on the rise and the increased interest by first home buyers is causing a flurry of excitement.

The rules are still the same.....buying and selling in the same market is always relative.

If you are looking to purchase in this market I would be more than happy to work with you to seek an opportunity.  

The current market means that sellers need to adopt a different approach in consulting with their agent and to ensure that asking prices are realistic. Houses that take a long time to sell are often over priced, but there can be other reasons.

Homes with out of the ordinary design features can be eye catching, but the more convertional designs will appeal to fewer people and take longer to sell.

The old real estate saying that, ‘there is a buyer for every property,’ remains true. However, the owner of a slow selling property may have weigh up whether to wait for that elusive person or lower the price to attract a greater range of buyers.

Sometimes it can be better to auction a property that has a unique design feature, because the setting of an appropriate price is more difficult and an auction might determine market price.

A simple renovation or landscaping can radically change the appeal of some properties, and which can often be brought at affordable prices resulting in significant savings even after the cost of renovations.

However, homebuyers should obtain expert advice before starting on any expensive structural renovations. An architect, building designer and real estate agent can all provide practical advice to avoid making a property less appealing.