Wealth management
Insight
Property investment continues to dominate Australian wealth strategies, yet many feel they are missing out due to financial barriers. The report reveals that 50% of Australians experience a fear of missing out (FOMO) when unable to invest in properties that they may appreciate.
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.
An SMSF can be a solution to potential FOMO. By leveraging superannuation balances, Australians can bypass the need for a traditional deposit and secure investment properties within their retirement fund. This addresses one of the largest hurdles to entering the property market.
How does an SMSF defeat property FOMO?
- Access to Capital: SMSFs enable individuals with super balances over $200,000 to invest in property without personal savings.
- Leverage: Investors can use SMSF loans to amplify their purchasing power.
- Long-Term Growth: Residential property, trusted by 92% of Australians, offers reliable long-term returns.
However, education remains key. Almost 38% of eligible Australians are unaware they qualify for an SMSF, and 39% find the setup process too complex. By seeking professional advice, investors can demystify SMSFs and take steps to secure high-growth properties.
For those grappling with property FOMO, SMSFs offer a tangible path to investment success, providing control, access, and a clear route to retirement wealth.
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.
