Australian Broker recently posed the question: has 2020 highlighted just how risky property investing can be – or is it simply a bump in the road for an otherwise secure asset class?
New research has helped give shape to the answer; despite the recent economic challenges faced within the country, Australians still view property as the most secure and profitable long-term investment.
The positive sentiment may be due to the property market having remained relatively steady throughout the pandemic, despite early predictions of up to a 30% decline in prices.
The survey commissioned by online finance information platform Money.com.au revealed that 42% of Australians indicated property is the best avenue for long-term return on investment, with 32% saying shares provide the best return rather, and the remaining categories all coming in beneath 10%.
“The survey findings indicate that Australians are still confident in investing in our property market, despite the swaying effects of the pandemic,” said Helen Baker, licensed financial advisor and spokesperson at Money.com.au.
“Our property market has shown resilience over the past six months, with house prices not falling nearly as low as experts had predicted at the start of the shutdowns. This high level of confidence is also echoed in the fact that many would invest in property within a self-managed super fund to fund their retirement.”
Of those surveyed, 41% said they would consider investing in direct property – such as a residential apartment – in a self-managed super fund (SMSF).
An SMSF enables members to invest in direct property, choose the property they invest in and control their own fund as the trustee; 41% of respondents said it was these factors which made the option attractive to them, with 33% saying they’d consider establishing one in the future.
The majority of respondents would be most interested in investing in their SMSF in residential houses (66%), residential apartments (39%) and commercial property (34%).
When interested parties were asked why they have not already set up an SMSF if they want one, 19% admitted they don’t know where to get good advice to start and 18% communicated they do not have the time or energy to set it up.