SMSFs not causing property boom: adviser
Can SMSFs investing in residential properties cause a boom, or worse, a property bubble?
Financial adviser Olivia Maragna says not, and she produced some facts to support her case.
According to Ms Maragna, SMSFs had just 33 per cent of the $1.6 trillion in Australian superannuation industry assets.
Out of the $500 billion in assets that SMSFs had, just 15 per cent of assets were invested in property. Of the 15 per cent invested in property, four per cent was invested in residential property and about 11 per cent in non-residential property.
Although SMSF investment in property had increased by about $1.5 billion in the financial year – sparking fears of a property boom – Ms Maragna said SMSF’s had increased by $67 billion so the increase was proportionately small.
Property investment had actually decreased as a percentage compared to total SMSF assets in the past financial year, she said.
Ms Maragna also said it could be expensive to set up a SMSF trust and warned people to do the sums before committing to such an investment strategy.