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Canberra residents are showing an overwhelming interest in self-managed super funds (SMSFs), with more than 250 people registering in 48 hours for SMSF events run by Colliers International.
Derek Whitcombe, director residential project marketing at Colliers International, said over the past six months Colliers International has noticed an increase in people buying apartments off-the-plan through SMSFs.
“The emergence of people seeking out SMSFs to invest in property has stemmed from a need for financial security and a fear of not having enough money to ensure a comfortable retirement," he said.
“The global financial crisis has hit a lot of people who had their super heavily invested in shares; therefore people wanting to minimise future risk through diversification are looking to invest their super in more stable asset classes, like property.”
According to Mr Whitcombe, Canberrans have the highest median income in the country and, as a result, get higher superannuation contributions compared to those in other states.
Colliers International partnered with SuperShift Australia to host information sessions on how to create an SMSF and the benefits of buying residential investment property through the fund.
Nic Ellis, principal of SuperShift Australia and SMSF specialist advisor said, “The harsh reality faced by millions of Australians about not having enough super to fund their retirement is finally sinking in.
“For a couple to live comfortably in retirement on an income of $80,000 to $100,000 per annum, they will need $1.2 to $1.5 million in superannuation.
“An alarming 97 per cent of Australians do not have enough superannuation to retire in the next 10 years," he said.