Powered by MOMENTUM MEDIA
subscribe to our newsletter sign up

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Criticism of super and property ‘ill-founded’

The debate that is “swirling” around SMSFs and residential property investment is not based on true figures, according to the SMSF Professionals’ Association of Australia (SPAA).

 

Evidence to date suggests SMSF trustees are cautious investors when it comes to property, SPAA’s head of education, Liz Ward, told nestegg.com.au’s sister publication, The Adviser.

“Firstly, much of the criticism of SMSF trustee investment in residential property is ill-founded,” Ms Ward said.

Advertisement
Advertisement

“Second, SPAA believes that once the true numbers are published, it will fundamentally show that the funds’ investment in property continues to be small in comparison to other investment classes.”

SMSF trustees have also been cautious when it comes to limited recourse borrowing arrangements, Ms Ward said. At 30 June 2013, ATO statistics show geared assets in SMSFs make up less than one half of one per cent of their total investments.

“New figures might change this investment outlook, but we remain confident that trustees will continue to invest prudently, especially where they enlist the support of an SMSF specialist,” Ms Ward said.

“Property is not an inappropriate investment per se... but it must be appropriate to the SMSF and consider the member’s circumstances, just like all investments, whether they are via an SMSF or personal investment decisions outside superannuation,” she concluded.

Criticism of super and property ‘ill-founded’
default
nestegg logo
subscribe to our newsletter sign up
FROM THE WEB
Recommended by Spike Native Network
Dan Hadley JLB Adela... - Hi Ro,

Thanks for your question and it is actually quite a valid one. At present there are a number of companies working on flying car options. These.......
Lawrie - What happens when a payment is made by an employer prior to the 30th June (say 25th June this year) via a clearing house, but it takes the clearing.......
Dr Terry Dwyer, Dwye... - She is quite right of course. Returns to both capital and labour incomes are much reduced by taxation and it has increased enormously since the.......
Anonymous - A Bad call by the RBA. Lower interest will not stimulate the economy any more at 1.25% than at 1.5%, which was already too low. The imminent election.......