Post on 17-Oct-2020
transcript
Per AmundsenCompany Secretary & Head of ResearchThinktank
Property Investing: Debt or Equity?
SMSF + InvestorEvent
SMSF + Investor Event
Per AmundsenCompany Secretary & Head of ResearchThinktank
Prior to Thinktank, Per was General Manager of AMP Property Finance, building a book of $1.5 billion in SME commercial property loans. An executive member of the Australian Risk Management Association, Per is a respected senior executive bringing an enormous amalgamation of property finance experience from institutions including Toronto Dominion, Westpac and Mirvac.
SMSF + Investor Event
Per AmundsenCompany Secretary & Head of ResearchThinktank
Australian tax environment &SMSF Investment Portfolio Data
• Australian tax environment has made owning Australian equities & direct property attractive
• Growth in assets held within SMSF’s from 2004-2007
0
20,000
40,000
60,000
80,000
100,000
120,000
Jan-04 Jan-05 Jan-06 Jan-07
ATO SMSF Investment Portfolio Data ($m)
Listed equities & trusts Unlisted equities & trusts
Cash, term deposits & debt securities Real property
SMSF + Investor Event
Per AmundsenCompany Secretary & Head of ResearchThinktank
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
SMSF + Investor Event
Per AmundsenCompany Secretary & Head of ResearchThinktank
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
ATO SMSF Investment Portfolio Data ($m)
Listed equities & trusts Unlisted equities & trusts
Cash, term deposits & debt securities Residential real property
Non-residential real property
SMSF + Investor Event
Per AmundsenCompany Secretary & Head of ResearchThinktank
Bull market run into 2019
• Post 2012 equities & bank products have risen by 60% & 30% respectively within SMSFs
0
50,000
100,000
150,000
200,000
250,000
300,000
Jun-
14Au
g-14
Oct
-14
Dec
-14
Feb-
15Ap
r-15
Jun-
15Au
g-15
Oct
-15
Dec
-15
Feb-
16Ap
r-16
Jun-
16Au
g-16
Oct
-16
Dec
-16
Feb-
17Ap
r-17
Jun-
17Au
g-17
Oct
-17
Dec
-17
Feb-
18Ap
r-18
Jun-
18Au
g-18
Oct
-18
Dec
-18
ATO SMSF Investment Portfolio Data ($m)
Listed equities & trusts Unlisted equities & trusts
Cash, term deposits & debt securities Residential real property
Non-residential real property
SMSF + Investor Event
Per AmundsenCompany Secretary & Head of ResearchThinktank
2019 challenges impacting SMSF trustees
SMSF + Investor Event
Per AmundsenCompany Secretary & Head of ResearchThinktank
Income generation from investing in commercial property
• Stable income over the last 10 years despite capital volatility
SMSF + Investor Event
Per AmundsenCompany Secretary & Head of ResearchThinktank
Income generation from investing in commercial property
• Stable income across all sectors
SMSF + Investor Event
Per AmundsenCompany Secretary & Head of ResearchThinktank
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
SMSF + Investor Event
Per AmundsenCompany Secretary & Head of ResearchThinktank
Retail v industrial v office
SMSF + Investor Event
Per AmundsenCompany Secretary & Head of ResearchThinktank
How can SMSF trustees access commercial property?
SMSF + Investor Event
Per AmundsenCompany Secretary & Head of ResearchThinktank
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
SMSF + Investor Event
Per AmundsenCompany Secretary & Head of ResearchThinktank
Income generation from investing in commercial property
• Stable income over the last 10 years despite capital volatility
SMSF + Investor Event
Per AmundsenCompany Secretary & Head of ResearchThinktank
DisclaimerThis information has been prepared on a strictly confidential basis by Think Tank Group PtyLtd (“Thinktank”) and may neither be reproduced in whole nor in part, nor may any of itscontents be divulged to any third party without the prior written consent of Thinktank. Thisinformation is not intended to create legal relations and is not binding on Thinktank underany circumstances whatsoever. This information has been prepared in good faith and isbased on information obtained from sources believed to be reliable, however Thinktankdoes not make any representation or warranty that it is accurate, complete or up to date.The information may be based on certain assumptions or market conditions, and if thoseassumptions or market conditions change, the information may change. No independentverification of the information has been made. Any quotes given are indicative only. No partof this information is to be construed as a solicitation to buy or sell any product, or toengage in, or refrain from engaging in, any transaction.To the extent permitted by law, Thinktank nor any of its associates, directors, officers oremployees, or any other person, makes any promise, guarantee, representation orwarranty, either express or implied, to any person as to the accuracy or completeness ofthis information, or of any other information, materials or opinions, whether written or oral,that have been, or maybe, prepared or furnished by Thinktank, including, without limitation,economic and financial projections and risk evaluation. No responsibility or liabilitywhatsoever (in negligence or otherwise) is accepted by any person for any errors, mis-statements or omissions in this information or any other information or materials. Withoutprejudice to the foregoing, neither Thinktank, nor any of its associates, directors, officers,employees nor any other person shall be liable for any loss or damage (whether direct,indirect or consequential) suffered by any person as a result of relying on any statement in,or omission from this information. Nothing in this information should be construed as legal,financial, accounting, tax or other advice.
Per AmundsenCompany Secretary & Head of ResearchThinktank
Final Questions?
SMSF + InvestorEvent