Whilst other parts of the country are struggling with mortgages and getting on the property ladder, in the SMSF world the love affair with property just runs on and on and…
Direct property investment is now the second most popular asset in SMSFs, after listed Australian shares.
And is growing at a faster rate.
Driving this forward:
- the strong capital returns property has delivered over the past decade
- greater access to finance at higher LVRs and more competitive rates.
However, please alert your clients that rental property is, therefore, also high on the ATO radar.
They want to see:
- Full disclosure of all rental income
- Leases at arm’s length market rates
- Deductible claims for repairs and maintenance only
- Objective and supportable valuations for property valuations.
They are also paying particular attention to property developments and issued TA2023/2. To alert developers about possible attempts to divert profits through special purpose vehicles.
As always, if you have any concerns, please give TriSuper Auditors a call.