Property Investing: Debt or Equity? - SMSF Connect€¦ · SMSF + Investor Event Per Amundsen Company Secretary & Head of Research Thinktank Prior to Thinktank, Per was General Manager

Per AmundsenCompany Secretary & Head of ResearchThinktank

Property Investing: Debt or Equity?

SMSF + InvestorEvent

SMSF + Investor Event


Prior to Thinktank, Per was General Manager of AMP Property Finance, building a book of $1.5 billion in SME commercial property loans. An executive member of the Australian Risk Management Association, Per is a respected senior executive bringing an enormous amalgamation of property finance experience from institutions including Toronto Dominion, Westpac and Mirvac.



Australian tax environment &SMSF Investment Portfolio Data

• Australian tax environment has made owning Australian equities & direct property attractive

• Growth in assets held within SMSF’s from 2004-2007

0

20,000

40,000

60,000

80,000

100,000

120,000

Jan-04 Jan-05 Jan-06 Jan-07

ATO SMSF Investment Portfolio Data ($m)

Listed equities & trusts Unlisted equities & trusts

Cash, term deposits & debt securities Real property



RBA Cash Rate & GFC

• Cash rate allowed investors to generate income from bank products prior to 2008

• SMSF trustees faced with the GFC in 2008

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

Jun-

04Au

g-04

Oct

-04

Dec

-04

Feb-

05Ap

r-05

Jun-

05Au

g-05

Oct

-05

Dec

-05

Feb-

06Ap

r-06

Jun-

06Au

g-06

Oct

-06

Dec

-06

Feb-

07Ap

r-07

Jun-

07Au

g-07

Oct

-07

Dec

-07

Feb-

08Ap

r-08

Jun-

08

RBA Cash Rate



Post-GFC interest rates & SMSF asset allocation

• SMSF trustees began to increase their holdings in equities & bank products as investors regained confidence in the markets

0

50,000

100,000

150,000

200,000

Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13



Cash, term deposits & debt securities Residential real property

Non-residential real property



Bull market run into 2019

• Post 2012 equities & bank products have risen by 60% & 30% respectively within SMSFs

0

50,000

100,000

150,000

200,000

250,000

300,000

Jun-

14Au

g-14

Oct

-14

Dec

-14

Feb-

15Ap

r-15

Jun-

15Au

g-15

Oct

-15

Dec

-15

Feb-

16Ap

r-16

Jun-

16Au

g-16

Oct

-16

Dec

-16

Feb-

17Ap

r-17

Jun-

17Au

g-17

Oct

-17

Dec

-17

Feb-

18Ap

r-18

Jun-

18Au

g-18

Oct

-18

Dec

-18



Cash, term deposits & debt securities Residential real property

Non-residential real property



2019 challenges impacting SMSF trustees



Income generation from investing in commercial property

• Stable income over the last 10 years despite capital volatility




• Stable income across all sectors



Retail v industrial v office

• E-commerce has changed the way shoppers shop and as such has had a negative effect on retail property prices.

• Office & industrial are in high demand with low vacancy rates and limited future supply



Retail v industrial v office



How can SMSF trustees access commercial property?



How can SMSF trustees access commercial property?

Equity exposure• AREITs• Listed Property Trusts• Direct Ownership• Unlisted Property Trusts• Property syndicates

Debt exposure• Marketplace

lending/fractionalized debt platforms

• Pooled mortgage funds




• Stable income over the last 10 years despite capital volatility



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Property Investing: Debt or Equity? - SMSF Connect€¦ · SMSF + Investor Event Per Amundsen Company Secretary & Head of Research Thinktank Prior to Thinktank, Per was General Manager