503,920 - The number of Self Managed Super Funds (SMSF) in Australia as of 31st March 2013. Each month 10,000 new SMSF's are opened.
Latest research indicates 1 in 12 Australians say they plan to open a SMSF in the next three years - approximately 1.4 million people. Over $73 Billion of property held in SMSF.
If you haven't heard the term 'SMSF', you soon will. It will be/is the buzz financial term for the next couple of years. Operating a SMSF appears attractive to many Australians. The benefits of controlling the assets, potentially lower fees and investment flexibility appear to be the main drivers.
In recent years we have seen the establishment of borrowing within the SMSF. This is a complicated process which requires professional advice from an accountant or financial planner. This advice will cover aspects of structures, compliance requirements and auditing.
Should you wish to purchase a property within your SMSF and require a loan to do so please contact me to discuss your options.
The ATO are currently monitoring this sector very closely. The SMSF regulations are considerable and should certainly be understood prior to the establishment of same. Significant penalties apply for any breaches of the code.
This is an exciting sector within the retirement planning industry. It will be very interesting to see ‘How Big” it gets.