Self-Managed Super Set for Low Returns?

There has been a lot of commentary in the newspapers recently discussing the potential for self-managed superannuation funds to push up housing prices. But the facts don't yet match the hype. The overall exposure of SMSF's to property is only moderately higher than institutional funds, and its actually 75% in commercial property, meaning less than 5% of SMSF assets are currently invested in housing. Of course it is a shift in allocations that moves prices, not the absolute level. An allocation shift from 5% to 20% would mean tens of billions of dollars of residential property demand. More of...

There has been a lot of commentary in the newspapers recently discussing the potential for self-managed superannuation funds to push up housing prices. But the facts don't yet match the hype. The overall exposure of SMSF's to property is only moderately higher than institutional funds, and its actually 75% in commercial property, meaning less than 5% of SMSF assets are currently invested in housing.

Of course it is a shift in allocations that moves prices, not the absolute level. An allocation shift from 5% to 20% would mean tens of billions of dollars of residential property demand.

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