By Robert Carry
The Federal Government's move to cap superannuation contributions at $50,000 has stimulated interest in renovation and investment in negatively geared property, according to a new poll by Australian Institute of Architect's building advisory group, Archicentre.
The organisation's latest Consumer Sentiment Poll showed that some 72% of respondents said they would be putting their extra funds into property. 40% said they would invest in renovation of their own home and 32% said they would invest in a negatively geared property.
28% meanwhile, said they would use their extra funds by investing in shares.
Angus Kell, Archicentre's Australian Capital Territory and New South Wales state manager said with many Australians planning to top up their superannuation with equity in the family home or investment properties, the current rising house prices will have a significant impact on the lifestyles of hundreds of thousands of Australians.
"The added bonus for people investing in the family home is that once completed and sold it is not subject to capital gains tax and they can enjoy the new renovations," said Kell.
He added that whilst this is a time of opportunity, people renovating their homes need to ensure they do their home work in relation to renovation and design to ensure they do not devalue their property and pay out tens of thousands of dollars for the privilege.
"People purchasing an investment property can run into financial difficulty if they do not carry out a thorough inspection of the property.
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