there has been a steady stream from equities to superfunds since the 2000 tech crash...I think the majority went for small commercial property up to 1 million in the early days after the crash
it is so much easier today to borrow for property using SMSF than it was in the past....I see many of the banks have woken up, with products to suit
I know a property industry person (not the bottom end of salesmen or agents) who had over 5 million in their superfund...but no direct property, just property trusts, and mainly equities....all the blue chips, plus whatever the broker advised. they also held two residential props outside of super that person is still down over 50% in the superfund, it was worse, closer to 70% at one stage
what has saved them from absolute disaster ? hmmmm, can anyone guess ??
the properties are up over 30% since 2007... so they are now relying on cashing in one of the houses to provide the funds for retirement....or renting one out for income.... now that the deposit interest rates will not see 10% for many years to come I did advise they had too much in equities, and that the GFC would last for years....but their broker convinced them the other way, and that equities was the only way to go...
I had suggested they would be grateful, they had held the properties, instead of cashing them in, and throwing it all at the stocks. (the broker kept niggling them to sell the properties and put it all into stocks) They have been waiting for the next rally, to get out of the equities for good now, so I expect they will be a seller of stocks whilst this current rally is on.
Had they held 30% in each of cash, property and equities the losses would not have been as severe. Just being in the industry, is no guarantee, you can predict the future any better than anyone else.
