HIGH vacancy rates in commercial property on the Gold Coast are providing new opportunities for Self Managed Super Funds (SMSF) says a Gold Coast superannuation specialist.
The Gold Coast now has the highest office vacancy rate in Australia, with more than 20 per cent of office space empty.
Principal of accountancy firm CJ Baker and Associates, Carolyn Baker, says while the situation might not be ideal for some, those looking to either start or expand an SMSF portfolio should look at the opportunities that commercial property offers.
“Commercial property makes up a substantial portion of the total value of the $3.9 trillion SMSF market in Australia accounting for almost 12 per cent compared with residential property sitting at almost three per cent,” she says.
“On the Gold Coast we have a commercial market where low demand and oversupply has pushed prices down considerably, and as a result a good buy now may prove to be a wise decision further down the track when the occupancy rates bounce back again.”
Baker says investors should be aware that there are some significant differences between the terms placed on commercial properties and residential properties within the structure of SMSFs.