NEWS – Residential Property is not a Major Asset in SMSFs

NEWS – Residential Property is not a major asset in SMSFs

Residential Property is not a Major Asset in SMSFs

Glenn Freeman writes at Professional Planner

Residential property plays only a minor role in self-managed super fund (SMSF) investment portfolios, according to Graeme Colley, director of technical and professional standards, SMSF Association.

Property is the third-largest asset class of SMSF investment, with the combination of direct investments and real estate investment trusts totalling around 15 per cent of the total pool of SMSF assets.

When it comes to assumptions that residential property equates for a majority of these investments, Colley says, “That’s quite incorrect. In fact, 80 per cent of the investments of SMSFs are in commercial properties.”

“These are not necessarily properties connected to the underlying member of the SMSF or connected entities. They’re also looking at the open market of commercial property and are investing via arm’s length arrangements,” he says.

“SMSFs often get criticised for the proportion of assets invested in those two particular sectors [equities, including property, and cash and fixed term assets] but there’s good reason why people go into it. You want to be really looking at a diversified portfolio.”

“People have this misconception that most of it is invested in domestic property, which is not true. It’s not only in the direct investments of SMSFs, but also indirectly through shareholdings that people might have in equities,” Colley says. READ MORE HERE

Got questions? If you want experts who have years of helping others, without the hype – then call for a FREE strategy session today and also get your FREE Expert Guide – Self-Managed Super and Youtop right hand side above.

If you have any questions, why not give us a call – it’s FREE also!

No obligation. 0407 361 596, Paul.

Advertisements

About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit will SET UP your SMSF and provide investment education for a better result. We take care of all your administration, accounting, ATO lodgement and audit of SMSFs, working with you and your advisors. If you want advice we can arrange one of our recommended advisors and accountants to meet with you, as we do not give advice, but take instruction only. Take control of your super, including property shares and other assets. Learn how to be your own advisor - make better decisions - by being mentored and coached to invest your own super wisely and strategically by qualified partners. Book to come to an event to find out more, or - Call us 0407 361 596, no obligation FREE strategy call.
This entry was posted in Retirement Planning, SMSF Info, SMSF Investing, Superannuation General and tagged , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s