..Reserve Bank governor Glenn Stevens told a conference in Sydney on Thursday that he's concerned about the rapid rise in loans to people investing in the housing sector..
..Allowing super funds to leverage into property and other investments was arguably one of the biggest blunders of the Howard Government. In permitting leveraged investment, the Coalition effectively turned super from being a retirement savings system into a speculative vehicle, in turn dramatically increasing the riskiness of Australia’s retirement savings and financial system.
Given many SMSFs have already lost large sums during a period of strong property price appreciation, one can only shudder to think what will happen once price appreciation slows or values fall.
It is a disaster waiting to happen and highlights the need for leveraged investment in superannuation to once again be banned.
