Wealth management
Insight
Australians are increasingly concerned about their ability to retire comfortably. According to the report, 26% of survey respondents believe they will need to work beyond the age of 65 to sustain their lifestyle. Rising living costs and insufficient superannuation returns are significant contributors to these concerns.
The report The Evolution of SMSF Property Investing by Investorkit and Agile Market Intelligence gives us insight into this investment pathway. The purpose of this research is to educate and inform those who are looking to invest in residential property about the possibilities of doing so via an SMSF.
For many, Self-Managed Super Funds (SMSFs) offer a solution to regain control. SMSFs allow individuals to invest directly in property, which remains the most trusted wealth-building strategy, with 96% of Australians prioritising home ownership.
Key benefits of SMSF property investment include:
- Control: Investors can make decisions tailored to their goals, such as purchasing high-growth residential properties.
- Diversification: Property offers a tangible, stable asset that balances risk within a retirement portfolio.
- Growth Potential: SMSFs enable Australians to leverage their superannuation to invest in growth assets like property without relying solely on traditional funds.
However, the report highlights a lack of awareness. Despite eligibility, 65% of Australians with sufficient balances are not using SMSFs. Misconceptions about setup complexity and lack of education remain barriers.
For Australians worried about retirement security, SMSFs are emerging as a practical tool to build wealth, address income gaps, and secure a future free from financial stress.
The Evolution of SMSF Property Investing was produced by conducting a survey and analysing the data. The survey was conducted between 19 August and 6 September 2024, with property investors and general consumers across Australia encouraged to complete the questionnaire. The survey received a total usable sample of 423 responses, therefore, the margin of error for the results enclosed ranges between +/-4.76%. This is an excellent level of accuracy for a study of this nature.
