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INSIGHTS

Why Residential Property Remains the Top SMSF Investment Choice

An SMSF can help you invest in any kind of property, but investors prefer residential, and we're exploring why.

Wealth management

Insight

October 29, 2024
82% of SMSF property investors prefer residential property investments

Residential property remains the preferred investment vehicle for Australian investors, with 82% prioritising property ownership​. Self-Managed Super Funds (SMSFs)  are increasingly being used to capitalise on this preference, according to The Evolution of SMSF Property Investing. 

Why is residential property ideal for SMSFs?

  1. Stability: Property offers a tangible, low-volatility asset, ideal for long-term retirement planning.
  2. Growth: High-growth residential markets provide strong returns over time, outperforming many other asset classes.
  3. Control: SMSFs give investors autonomy to select high-performing properties and manage their portfolio strategy.

The report highlights that 58% of eligible Australians who haven’t used SMSFs would consider property investment as a pathway to retirement wealth​. Yet barriers such as lack of education prevent wider adoption.

For those seeking financial security, residential property via SMSFs delivers diversification, tax benefits, and steady capital growth. As Australians increasingly prioritise property ownership, SMSFs provide a powerful tool to secure their retirement future.

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.

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