New research from Investment Trends shows a significant drop in the number of trustees looking to borrow within their superannuation.
Speaking to SMSF Adviser, Investment Trends senior analyst Recep III Peker said a survey conducted in 2013 showed 65,000 trustees planned to start borrowing within their superannuation in the following year.
By April 2014, that number had fallen to 48,000 trustees who want to borrow in the next 12 months, Mr Peker said.
“We do ask [why] for those who aren’t interested in borrowing. Generally it's because they don't think it's appropriate, prefer to utilise it outside their SMSF or that they're just not interested,” he said.
However, Mr Peker noted there are currently 38,000 SMSFs that utilise gearing within their super, up from 34,000 in 2013.
“If you’re looking at those intending to set up an SMSF, it’s a big reason for wanting to do so, but if you look at the established pool of trustees, they’re not as interested in borrowing as they were last year.”
As reported in SMSF Adviser last week, 21 per cent of those planning to set up an SMSF cite access to borrowing within superannuation as a driver for SMSF establishment.
“Among the next wave of people, those who want to have an SMSF some time in the future, we’re seeing property as a key reason,” Mr Peker said.
SUBSCRIBE TO THE SMSF ADVISER BULLETIN
- 22 Sep 2017ASIC permanently bans SMSF property spruikerBy Miranda Brownlee
- 22 Sep 2017Male SMSF investors ‘bigger risk takers’, says reportBy Staff Reporter
- 22 Sep 2017Lawyer flags subdivision trap with downsizer contributionsBy Miranda Brownlee
- 22 Sep 2017ATO urged to address ‘unknowns’ with LRBA reportingBy Miranda Brownlee
- 21 Sep 2017Lost and unclaimed super climbs to $18 billionBy Lara Bullock
- 21 Sep 2017ATO to release further guidance on reservesBy Miranda Brownlee
- view all
- Male SMSF investors ‘bigger risk takers’, says report
Male SMSF members tend to hold a greater share of assets in higher risk investments including domestic shares and property in comparison to ...read more
- Lawyer flags subdivision trap with downsizer contributions
SMSF trustees planning to make downsizer contributions have been warned that if a property has been subject to a partial sale in the 10 yea...read more
- ATO urged to address ‘unknowns’ with LRBA reporting
The ATO has been asked to provide further clarity around the events based reporting requirements for LRBA repayments, with the new requireme...read more
- view all