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Survey shows Aussies see property as safest investment

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A growing number of Australians believe property is the best place to put their money long-term. Photo: Shutterstock

Survey shows Aussies see property as safest investment

Nearly one in two Australians believe property is a more secure long-term investment class than shares, gold, cash and fixed interest, according to the results of a recent nationwide survey.

Nearly one in two Australians believe property is a more secure long-term investment class than shares, gold, cash and fixed interest, according to the results of a recent nationwide survey.

Financial management platform Money.com.au recently polled more than 1,000 Australians on what asset class they believed provided the most potential for long-term returns, with 42 per cent of respondents nominating property, while 32 per cent believed that the stock market was the best avenue of investment.

New South Wales respondents were the most confident around property, with 47 per cent saying it was the best asset class for long-term returns.

And in a reflection of the relative performance of WA’s property market in recent years, just 27 per cent of Western Australians said they believed property was the best investment, compared to 42 per cent who preferred shares.

ACT residents were also more likely to prefer shares, with 47 per cent of respondents saying the stock market was a safer asset class as compared to 29 per cent who preferred property.

Around 41 per cent of respondents said they would consider direct investments in property in their self-managed super funds, while 33 per cent said they would consider establishing an SMSF in the future.

Two-thirds of respondents said they would be interested in investing in a detached house in their SMSF rather than an apartment.

Overall, Money.com.au financial advisor Helen Baker said the survey results were a clear indication of confidence around property investing.

“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," Ms Baker said.

“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 said starting an SMSF was a complex undertaking, with strict guidelines in place, and should only be done under advice from a professional financial advisor.

Key criteria for investing in property via a SMSF include stipulations that the property must be used solely to fund a person’s retirement, the investor or their family cannot live in or rent the property, and the property cannot be purchased from any related parties.

“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,” Ms Baker said.

 

 

 

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