Put Not Your Trust In Money, But Put Your Money In Trust
-Oliver Wendell Holmes
The Rise and Rise of Self-Managed Super Funds
After the Global Financial Crisis (GFC) our traditional industry and retail based superannuation funds were subject to massive losses, with some $150 billion dollars wiped out from superannuation funds Australia wide. The main reason was the worldwide stock market crash, but also the lack of transparency endemic in the Superannuation industry, and the high fees charged by retail superannuation funds.
Today, savvy investors are deciding to manage their own superannuation to mitigate such large and uncontrollable losses. Since the GFC, Self-Managed Super Funds (SMSF) have grown from 4% of total superannuation investments in Australia to around 31%, with SMSF assets valued at around $531 Billion dollars, equivalent to about 16% of the ASX. It is estimated that over 1 million Australians are currently managing their own superannuation.
The main advantage that SMSF has over industry based super funds is that you are able to direct your own investment strategy, including investing in the Australian residential property market.
The Australian housing market is booming and there is a scarcity of homes for our ever-increasing population. House prices have, on the whole, increased even during turbulent financial times. Based on population and housing projections, there is expected to be a growing gulf between supply and demand for housing, which almost always drives house prices and rents upwards. SMSF is another vehicle you can use to invest in this lucrative market.
We know that your Superannuation is one of the biggest investments that you can make and that more and more Australians want to get their hands on the wheel of their financial future. At The Investor Hub, we are highly experienced experts in SMSF finance for residential and commercial property, and we also have trusted partners to provide you with advice regarding financial planning and property solutions for your SMSF.