SMSFs no influence on housing

The self-managed superannuation fund sector is no threat to homebuyers, according to the latest insights from Class.

The software firm's latest SMSF Benchmark Report shows SMSFs' are not influencing high property prices because, as a sector, they have negligible exposure to residential property.

The research shows SMSFs own less than 1% of residential properties in Australia, while 22% is owned by non-SMSF investors and 68% held by owner-occupiers; that equates to around $64 billion of the total $6.7 trillion residential property market.

"SMSF property purchases are just too small a part of the market to be having a big impact," Class chief executive Kevin Bungard said.

Overall about 73% of SMSFs have no direct exposure to property assets at all, residential or commercial. Comparatively the estimated indirect property exposure of APRA-regulated super funds sits at 9%.

Bungard said SMSFs that are invested in direct property are quite heavily invested, with the asset class accounting for almost half of their portfolios.

"These figures are worthy of further discussion and analysis but we should not simply conclude that the members of these SMSFs with direct property are overexposed to this asset class," Bungard said.

"Many of the members of these funds would have investments outside of their SMSF as well, so you would need to look at the totality of their wealth to be able to draw conclusions about the risks they are taking."

The report, which covers the December 2016 quarter, analysed over 125,000 funds - more than 21% of Australia's SMSF market.

Read more: ClassAustraliaKevin BungardSMSF Benchmark Report
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