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Investors continue to bank on property for returns

Property continues to be considered the most lucrative investment option for Australians despite recent instability, according to new research.

New research from Money.com.au – which involved a survey of 1,006 Australians from across the country – has revealed that 42 per cent of respondents consider property to be the most lucrative long-term investment, followed by shares (32 per cent), gold and cash (9 per cent, respectively), and fixed income from government or corporate bonds (8 per cent).

Moreover, 41 per cent of respondents said they would consider investing in property via a self-managed super fund (SMSF), with 33 per cent open to establishing an SMSF in the future, and 8 per cent already members.

Among the respondents yet to set up an SMSF, 28 per cent said they lack funds in their existing superannuation account, 19 per cent conceded they lack good advice, 18 per cent said they are not focused on their retirement yet, and 18 per cent said they did not have the time or energy to set it up.

Most respondents said they would invest in residential property via an SMSF, with just 34 per cent open to investing in commercial property.

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Reflecting on the findings, Helen Baker, licensed financial adviser and spokesperson at Money.com.au, observed: “The survey findings indicate that Australians are still confident in investing in our property market, despite the swaying effects of the pandemic.

“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. However, not many people know how to establish a self-managed fund.”

Ms Baker encouraged those considering property investment via an SMSF to seek professional advice.

“Starting your own fund is quite complex, with strict guidelines to follow, so I always encourage people to seek qualified advice from a professional,” she said.

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“I also advise Australians to do their own research, particularly when investing in real estate.

“While setting up a self-managed super fund can be complicated and time consuming, it often reaps substantial benefits in the long term for those whom it may be appropriate to.”

[Related: Buyer demand drives up Perth house prices]

Investors continue to bank on property for returns
Investors continue to bank on property for returns
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