SMSF and macro prudential: Tweet of the day

Australia: Boom to bust author Lindsay David posed an interesting point of discussion yesterday evening, wondering what the effect of macro prudential measures may be on self managed super funds with residential property investments.

Jordan Eliseo, chief executive of ABC Bullion, tweeted back “problem is mate that MP won't hurt SMSF's or Foreign HNWs - they can afford 20% deposits no worries. MP will only hurt FHBs I fear”, to which David noted that the question is how it affects demand.

Peter Fraser from Brisbane Business Finance noted that residential investment in SMSF isn't usually the best anyway, and is often a decision by the beneficiary for a retirement house, not for growth.

David expects it to play out before the end of 2017.