From challenges to opportunities: How higher interest rates drive SMSF growth for brokers?
A higher interest rate environment and a desire for more financial control over retirement is driving SMSF lending growth, which is proving to be a boon for both brokers and lenders.
Australian Taxation Office (ATO) data shows that in June 2024, there were a total of 625,609 SMSFs in Australia, an increase from 563,474 five years earlier in June 2019.
With a total of over 1.1 million members, the total allocation of assets to residential property in Australian SMSFs is now over $55 billion, an increase from $36.5 billion back in 2019.
For More Investment Consultation Please Contact Us At: Simply Invest Group
Financial controllers
According to Thinktank, more Australians are trying to get more control over their own wealth management during a period when super returns may not have met their expectations.
SMSF investments into commercial properties are also growing; Thinktank said this is being driven by Limited Recourse Borrowing Arrangements (LBRAs), which allow an associated party— like a member’s own business—to lease the commercial property at market rent.
S&P Global Ratings noted in its Australian RMBS and the Growing SMSF Factor report this year that SMSFs were becoming a more prominent feature of Australian RMBS transactions.
Read Full Article At: Broker News
For More Information on SMSF Please Contact Us: Simply Wealth Group
