subscribe to our newsletter
SMSF appetite for borrowing waning

SMSF appetite for borrowing waning

Katarina Taurian
07 August 2014

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.

SMSF appetite for borrowing waning
smsfadviser logo
join the discussion

What do you plan to do in response to the new adviser education standards?

SUBSCRIBE TO THE
SMSF ADVISER BULLETIN

Get the latest news and opinions delivered to your inbox each morning

In this month's issue:

  • Time wrap
  • The tech bull run
  • From hobby to passion
  • Golden Years
  • An untimely reminder
  • Why change is so difficult
  • Key Strategies for equalising super