As the heated debate regarding SMSFs and residential property investment increases, the SMSF Professionals’ Association of Australia (SPAA) has claimed that recent reports were not based on true figures.
Late in 2013, the central bank questioned SMSFs’ increasing use of borrowing to invest in property in its recent Financial Stability Review, which noted that the increasing trend towards property gearing by SMSFs could inflate property prices. Assistant Treasurer Arthur Sinodinos weighed into the debate commenting that, “he would look at creating a more “level playing field” between key groups in Australia’s superannuation industry, including the industry and retail funds.”
SPAA’s head of education Liz Ward, has hit back claiming that, “evidence to date suggests SMSF trustees are cautious investors when it comes to property”, and “much of the criticism of SMSF trustee investment in residential property is ill-founded.”
Ward reiterated that, “that once the true numbers are published, it will fundamentally show that the funds’ investment in property continues to be small in comparison to other investment classes.”