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Investing in property market with Super Annuation vs. SMSF ?

Discussion in 'Property Finance' started by AlbertWT, 28th Jul, 2016.

  1. AlbertWT

    AlbertWT Well-Known Member

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    Sydney
    Hi People,

    I've heard quite often about the new investing method in property using Self-Managed Super Fund (SMSF) in the news and also found out that my Industry Super Fund can also allows me to invest in property.

    When I look into this graph: AustralianSuper - Super Performance Annual it shows that the return is quite good around 10%:

    upload_2016-7-28_0-25-8.png

    So is this a good and safer option to invest rather than using SMSF and then selecting the property ourselves ?

    Any thought and comments would be greatly appreciated.

    Thanks.
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    All funds invest a % in property both direct and indirect (LPT or REIT listed funds), they cannot buy a specific asset for an individual as it is a fund with mamy members and they do not buy residential assets unless it's for development eg CBUS partnering with another developer then selling the completed project.

    You generally wouldn't put all of your super into one asset class unless it was bonds or cash for a defensive move. Super allows you to diversify your investment away from property to be exposed to other markets and asset classes which perform in different cycles to property.
     
    albanga likes this.
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Same as outside a superfund.

    Would you invest in a managed fund that invests in property or directly in property?

    Control and leverage are the main issues.
     
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  4. JohnPropChat

    JohnPropChat Well-Known Member

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    and risk appetite.
     
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  5. AlbertWT

    AlbertWT Well-Known Member

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    Cool, now I see the bigger picture :)b.

    I will leave the current Super Annuation in the balanced mode while actively looking for the property to invest in QLD now.

    Thanks for the sharing guys.