‘Sophisticated’ property investors eyeing SMSFs
New research has shown a significant increase in the proportion of “sophisticated” property investors who have purchased or are planning to purchase a property via their SMSF.
The Smart Property Investment and Property Investment Professionals of Australia Property Investor Sentiment Survey looked at the patterns of active property investors, with 41.8 per cent of the surveyed groups having between two to four properties in their investment portfolio.
Approximately 14 per cent of respondents stated that they had invested in property via an SMSF, a “significant increase” from the 4.4 per cent reported in the February 2014 survey
In addition, 21.4 per cent of surveyed investors plan to purchase a property via an SMSF within the next 12 months, an increase of 4 per cent from the February survey.
Speaking to SMSF Adviser, PIPA chair Ben Kingsley said he expects SMSF property investment to continue its upwards trend over time.
“SMSFs are a clear indication that there is a growing proportion of our population who are ready to take ownership of their own destiny, and part of that is going to be looking at their investment options,” Mr Kingsley said.
“I suspect property has been a long-time favourite of most Australians from an investment point of view, so I can only see these numbers increasing.”
However, Mr Kingsley warned that regular investors and SMSF trustees alike should ensure that the low-interest rate environment is not the primary reason they are committing to new purchases.
“The fundamentals need to stack up. There’s people looking to invest in property who aren’t going to have a good outcome because they haven’t done their homework,” Mr Kingsley said.