self-managed super investors losing 75%

This article in today's SMH is interesting...

Some self-managed superannuation fund investors who borrowed heavily to buy real estate have lost up to 75 per cent of their investments in two years, say investment counsellors, despite boom property markets and record low interest rates.

In a market like this, how can people lose 75% of their money investing in property? :confused:

The article talks about buying off the plan, but even then, I would think that losing 75% of the investment is a bit too much...
 
This article in today's SMH is interesting...

In a market like this, how can people lose 75% of their money investing in property? :confused:

The article talks about buying off the plan, but even then, I would think that losing 75% of the investment is a bit too much...
the investment victims typically had super lump sums of between $100,000 and $150,000, and were encouraged to take out loans of up to $500,000


Easily done in or out of a SMSF: Ignoring expenses, put down $100K, borrow $400K on a '$500K' property. A year or two later it's worth $425K and your $100K is now $25K. Drops like this are far from unknown.
 
Covered here
http://somersoft.com/forums/showthread.php?t=100470

I managed 100s of SMSFs, with the majority investing in property, none of these guys have lost money on a LRBA. I would like to see the evidence of 75% losses. I believe there should be attention to unlicensed people recommending property in a SMSF, but some of the stuff written is utter rubbish.

Major warning have went out to real estate agents and brokers with 'one stop' shops and SMSF seminars - yet I get invited to speak at a SMSF seminar run by a real estate agent without a AFSL....... go after them....

From memory, only 3% of the total $540b in SMSF assets are LRBAs or borrowing in SMSF to purchase property.

Cheers, Ivan
 
Sensationalism as always.
It has nothing to do with SMSF , same happens when you buy under your own name when you buy OTP or over-capitalise, or over-extend.
 
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