Invest
Property could ‘wipe out’ SMSF savings
Investing in property via an SMSF is an “oversold” strategy that could “wipe out” the retirement savings of trustees, according to an industry professional.
Property could ‘wipe out’ SMSF savings
The overselling of SMSF properties is not confined to brokers or advisers but is happening “across the board” where a conflict of interest exists, Waterfall Financial Planning director Dacian Moses told Nest Egg’s sister publication SMSF Adviser.
“I don’t think it’s a case of ‘those nasty brokers are selling loans – they shouldn’t’, or ‘those nasty planners’ or ‘those nasty property spruikers’,” Mr Moses said.
“It’s across the board where that conflict exists: where the person initiating the process is going to make a great deal of money out of that deal going ahead,” he said. “Follow the money – who’s making the money out of this deal?”
The overselling of property investments to SMSF trustees is fundamentally an issue resulting from the lack of regulation for property investment advice, Mr Moses said.
“I constantly get spruiking emails from property stock warehouses that will say, ‘Here are another four properties in Gladstone ready to go with SMSF lends!’ or ‘Here’s a [property] in Northern NSW, just perfect for limited recourse borrowing!’” he said.
“The sales pitch isn’t so much about the properties being great investments for the trustee of an SMSF; the inducement is ‘how can I get some free commissions?’”
Mr Moses fears there will be many SMSF investors who buy overpriced assets but who will then be forced to sell at a loss.
“I think that a lot of people’s financial security in retirement will be adversely affected, if not wiped out,” he said.
“It won’t be the first time and, unfortunately, it won’t be the last.”

Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more

Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more

Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more

Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more

Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more

Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more

Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more

Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more

Property
North platform adds household reporting feature to boost adviser efficiency
AMP's North platform has launched consolidated household reporting across multiple client accounts, helping financial advisers streamline their client review processes. Read more

Property
What Adds The Most Value To Properties?
Wondering how to up the value of your property? Properties are worth a lot of money in general, but there’s always a way to maximise value. The good news is that most of the things you can do to ...Read more

Property
Centuria reports strong growth in alternative real estate sectors for FY24
Centuria Capital Group has reported significant growth in alternative real estate sectors for the 2024 financial year, driving stable performance and increased guidance for FY25. Read more

Property
How to leverage equity in your home for investment or renovation
Home equity, the value of your property minus any debts owed, is a powerful financial resource many homeowners in Australia can utilize to further their financial goals. Whether you're looking to ...Read more

Property
Exploring REITs: Real estate investment without buying property
Real Estate Investment Trusts (REITs) offer a compelling investment alternative for those interested in the real estate market but may not want to endure the complexities and capital requirements of ...Read more

Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more

Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more

Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more