Investors reveal confidence rise in SMSFs

Following last year’s disappointing property market slump, Australia has managed to recover in recent months, and healthy conditions coupled with record low-interest rates have triggered a surge in interest towards Self-Managed Super Funds (SMSFs).
Figures released by the Australian Taxation Office last December show that there are currently 598,582 SMSF’s made up of 1,124,699 members and total estimated assets of just over $746 billion.

Compared to retail and industry funds, SMSF members have the opportunity to purchase a property asset either directly or indirectly, and everyday Australians are taking advantage of this because there are many who are not able to invest with their savings and/or equity alone. The resulting rental income paid to the SMSF is another benefit that is attracting fund members, enjoying tax rates that are capped at 15 per cent and is non-taxable in the pension phase.

Some of the other elements that endear self-managed funds to members include:

  • Better returns
  • Lower tax rate upon property disposal
  • Smart investors can balance their portfolio to suit their circumstances

Experts are predicting an increase in the number of SMSFs in the coming years, with an estimated total asset value of up to $1 trillion projected.

If you would like to know if an SMSF is suitable for you, contact us to arrange an appointment with a Financial Planner.

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