There has been a significant increase in the number of Australians using a self-managed superannuation fund (SMSF) to invest in property over the last three years.
The latest SMSF quarterly data from the Australian Taxation Office showed that SMSF asset allocation for residential property grew 26.4% to $55.2 billion between the June 2021 and June 2024 quarters.
There are a few reasons behind this.
1) Conventional superannuation funds may not be delivering the expected returns for some investors. Property, with its track record of capital growth and rental yields, will be an appealing alternative for those looking for stronger growth.
2) Investors have realised they don’t need as much as they thought to start an SMSF. You can set up an SMSF with just $150,000.
3) SMSF lending has become more accessible. Previously, not many lenders offered SMSF products, but this is changing. More lenders are entering the SMSF loan market, creating more competitively priced options for borrowers.
If you’re looking for an SMSF property loan, we can help. Click here to discuss your scenario with one of our experienced mortgage brokers.