$50,000 Superannuation Cap to Boost Property Investment
Archicentre News Release
Cap to Boost Property Investment
change in Australia's superannuation regulations which becomes law today limiting
superannuation contributions to $50,000 could be a further catalyst for a return
to property investment and renovation.
Caulfield, Managing Director of Archicentre said one million baby boomers
set to retire in the next ten years who have had their potential superannuation
contributions slashed by 50% from $100,000 to $50,000 will need to look
for other areas to invest.
should take professional advice from their accountant as a first step
in undertaking the renovation for retirement strategy to ensure their
taxation and investment situation is appropriate.
has a threefold advantage for baby boomers - investment in the family
home does not attract capital gains tax when it is sold, people get to
enjoy a better lifestyle and could take the opportunity to turn part of
their home into a future revenue stream by creating a self contained living
area for rent.
said the major issue facing baby boomers 'Renovating for Retirement' is
careful planning with the renovation design being clearly matched to the
long term aim of producing revenue either in the form of rent or capital
the design, accurate paper work for tendering and project management is needed
to ensure the project comes in on budget to maximise the investment potential.
need to recognise that renovating for profit to build a retirement nest egg
is similar to running a business where costs and profits need to be managed
accurately and constantly monitored."
finds many retirees who set out to renovate for retirement run into problems
by purchasing a home for renovation without having the property inspected professionally,
only to find that they have purchased a lemon with faults that require thousands
of dollars to repair before they start.
people do their homework, a well designed and managed renovation project that
is completed on budget can create a major boost to a retiree's assets."
to develop a separate independent living area as part of the renovation that
can be rented out is a strategy that can provide the retirees with extra income
from their home when they are at a stage of downsizing or presents a value added
aspect when selling the property, Mr Caulfield added.