15 Super Funds Compared - Growth Results Revealed
Thursday, June 06, 2024
15 Super Funds Compared
Growth Results Revealed
These clients started with $100,000 - $200,000 from their Super - invested into property. They added between $146,000 and $260,000 equity to their Super funds in 1-3 years. (Orange numbers indicate growth figures)
The annual growth rate of their Super equity is between 24% and 43%
In comparison, the ATO reported the average Industry Super annual growth rates ranged from -19.6% and 15.5% between 2005 & 2021.
Scroll down to dive deeper into each of these client results.
Skip to the end to uncover why these client results are so different to typical Industry or Retail funds.
The average Super balance at retirement is around $350,000
These clients are achieving that in around 3 years
Client 1
Client 1 purchased a property in Coomera during March 2021. They used $195,100 from their super as the deposit.
The property has grown in value from $435,000 to $695,000. That’s $260,000 growth in equity.
The growth for this property has been 59.77% over 3.2 years. An outstanding result, and well above average. That’s equivalent to an approximate 17% annual growth rate. Stunning!
When you consider that the client used $195,100 from Super as their deposit, and now have an additional $260,000 in equity growth, their super investment grew by 133%. That’s equivalent to a 32.5% annual growth over 3.2 years.
When was the last time you saw that kind of growth in a traditional super fund in one year, let alone averaged over 3 years?
But this story doesn’t stop here!
When the client purchased the property they rented it out for $470 per week. The current rental estimate is now $670 per week. That’s an additional $200 per week or $10,400 per year in rental income.
To put an additional $10,400 a year into Super via your personal income - you’d need to receive a pay rise of approximately $94,000 per year*.
This is an extra-ordinary result. But as you’ll see in our other client results - the research our team has done has been well worth the result for all clients.
*Based on 11% Superannuation contribution rate
Performance reviews continued | Clients 2-15
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Client 2 purchased a property in Ipswich during May 2021. They used $202,700 from their super as the deposit.
The property has grown in value from $565,000 to $785,000. It’s created $220,000 in equity.
The growth for this property has been 38.96% over 3.1 years. That’s an average annual growth rate of approx 11.5%
Their initial super investment of $202,700 increased by $220,000 in 3.1 years - a 108% increase on their initial investment, or an approximate annual growth rate of 27.5%
Rent potential has increased by approx. $200p/w. A $10,400 per year income increase.
Client 3 purchased a property in Logan during May 2021. They used $174,000 from their super as the deposit.
The property has grown in value from $516,600 to $735,000. It’s created $218,400 in equity.
The growth for this property has been 42.28% over 2.9 years. That’s an average annual growth rate of approx 12.5%
Their initial super investment of $174,000 increased by $218,400 in 2.9 years - a 125.5% increase on their initial investment, or an approximate annual growth rate of 31%
Rent potential has increased by approx. $165p/w. A $8,580 per year income increase.
Client 4 purchased a property in Redland Bay during July 2021. They used $129,000 from their super as the deposit.
The property has grown in value from $399,000 to $535,000. It’s created $136,000 in equity.
The growth for this property has been 34.09% over 2.9 years. That’s an average annual growth rate of approx 10%
Their initial super investment of $129,000 increased by $136,000 in 2.9 years - a 105.5% increase on their initial investment, or an approximate annual growth rate of 26.5%
Rent potential has increased by approx. $200p/w. A $10,400 per year income increase.
Client 5 purchased a property in Brisbane during June 2021. They used $170,000 from their super as the deposit.
The property has grown in value from $360,000 to $540,000. It’s created $180,000 in equity.
The growth for this property has been 50% over 2.9 years. That’s an average annual growth rate of approx 14.3%
Their initial super investment of $170,000 increased by $180,000 in 2.9 years - a 105.9% increase on their initial investment, or an approximate annual growth rate of 27%
Rent potential has increased by approx. $165p/w. A $8,580 per year income increase.
Client 6 purchased a property in Coomera during August 2021. They used $178,100 from their super as the deposit.
The property has grown in value from $449,000 to $620,000. It’s created $171,000 in equity.
The growth for this property has been 38.1% over 2.8 years. That’s an average annual growth rate of approx 11%
Their initial super investment of $178,100 increased by $171,000 in 2.8 years - a 96% increase on their initial investment, or an approximate annual growth rate of 24%
Rent potential has increased by approx. $185p/w. A $9,620 per year income increase.
Client 7 purchased a property in Coomera during May 2021. They used $150,500 from their super as the deposit.
The property has grown in value from $430,000 to $670,000. It’s created $240,000 in equity.
The growth for this property has been 55.8% over 3 years. That’s an average annual growth rate of approx 15.9%
Their initial super investment of $150,500 increased by $240,000 in 3 years - a 159.5% increase on their initial investment, or an approximate annual growth rate of 37.4%
No rental growth figures available.
Client 8 purchased a property in Brisbane during May 2021. They used $100,900 from their super as the deposit.
The property has grown in value from $342,000 to $540,000. It’s created $198,000 in equity.
The growth for this property has been 57.9% over 3 years. That’s an average annual growth rate of approx 16.4%
Their initial super investment of $100,900 increased by $198,000 in 3 years - a 196.2% increase on their initial investment, or an approximate annual growth rate of 43.5%
No rental growth figures available.
Client 9 purchased a property in Coomera during May 2021. They used $160,000 from their super as the deposit.
The property has grown in value from $440,000 to $660,000. That’s $220,000 growth in equity.
The growth for this property has been 50% over 3.1 years. That’s an average annual growth rate of approx 14.3%
Their initial super investment of $160,000 increased by $220,000 in 3.1 years - a 137.5% increase on their initial investment, or an approximate annual growth rate of 33.5%
No rental growth figures available.
Client 10 purchased a property in Brisbane during Feb 2021. They used $121,000 from their super as the deposit.
The property has grown in value from $360,000 to $550,000. That’s $190,000 growth in equity.
The growth for this property has been 52.8% over 3.3 years. That’s an average annual growth rate of approx 14%
Their initial super investment of $121,000 increased by $190,000 in 3.3 years. That’s a 157% increase on their initial investment, or an approximate annual growth rate of 24%
No rental growth figures available.
Client 11 purchased a property in Coomera during March 2021. They used $171,800 from their super as the deposit.
The property has grown in value from $435,000 to $660,000. That’s $225,000 growth in equity.
The growth for this property has been 51.7% over 3.2 years. That’s an average annual growth rate of approx 14.5%
Their initial super investment of $171,800 increased by $225,000 in 3.2 years. That’s a 131% increase on their initial investment, or an approximate annual growth rate of 32%
No rental growth figures available.
Client 12 purchased a property in Logan during April 2021. They used $164,900 from their super as the deposit.
The property has grown in value from $484,500 to $715,000. That’s $230,500 growth in equity.
The growth for this property has been 47.6% over 3.1 years. That’s an average annual growth rate of approx 13.7%
Their initial super investment of $164,900 increased by $230,500 in 3.1 years. That’s a 131% increase on their initial investment, or an approximate annual growth rate of 33.7%
No rental growth figures available.
Client 13 purchased a property in Brisbane during May 2021. They used $145,000 from their super as the deposit.
The property has grown in value from $565,000 to $750,000. That’s $185,000 growth in equity.
The growth for this property has been 32.7% over 3 years. That’s an average annual growth rate of approx 9.9%
Their initial super investment of $145,000 increased by $185,000 in 3 years. That’s a 127.6% increase on their initial investment, or an approximate annual growth rate of 31.5%
Rent potential has increased by approx. $115p/w. A $5,980 per year income increase.
Client 14 purchased a property in Redland Bay during May 2021. They used $110,500 from their super as the deposit.
The property has grown in value from $399,000 to $545,000. That’s $146,000 growth in equity.
The growth for this property has been 36.6% over 3 years. That’s an average annual growth rate of approx 11%
Their initial super investment of $110,500 increased by $146,000 in 3 years. That’s a 132.1% increase on their initial investment, or an approximate annual growth rate of 32%
No rental growth figures available.
Client 15 purchased a property in Ipswich during March 2023. They used $140,750 from their super as the deposit.
The property has grown in value from $381,650 to $510,000. That's $128,350 growth in equity.
The growth for this property has been 33.6% over 1.2 years.
Their initial super investment of $140,750 increased by $128,350 in 1.2 years. That’s a 91.2% increase on their initial investment
No rental growth figures available.
Why are these results higher than the National average?
There are two reasons for this growth difference:
Leverage & Market Research
Leverage
The ability to borrow money to purchase a more expensive asset. Because the asset is a higher value, the market growth rate applies to the higher valued asset.
To understand more about the power of leverage and see a year by year example of leveraged v non-leveraged growth - read our 7% growth comparison and client results articles.
Market Research
Our property research team works hard to identify opportunities that have stronger immediate growth potential. Property markets (like any market) go through seasons of fast and slow growth, so the ability to identify opportunities for high growth potential can make all the difference.
3 years ago, Queensland was identified as an area of strong growth potential and ranked very well when considering:
- Comparison to national average prices
- Migration to Queensland
- Local area sales
- Rental demand
- Population demographics
- Development costs
- Land costs
- Infrastructure
In the same period, there are areas of Australia that didn’t grow as well. Victoria for instance was a slower market due to higher national average property prices and high migration rates moving out of Victoria through Covid lockdowns.
Today, property markets around Australia are different. There are new areas of opportunity to research due to shifting market pressures all the time.
It’s common to want to buy in your local market or an area that you know. Unless you are accessing national research, a property purchase may not experience growth (like these client examples) for several years. This places unnecessary pressure on the cash flow and growth of an investment in property.
Compare property in Super versus Industry Super or Retail Super
The market growth of shares and property over a long period is fairly similar. You can make arguments for either, however there are two major differences between Industry or Retail Funds that are based on the stock market, and Property in a Self Managed Super Fund.
Volatile Markets
The stock market can certainly have good times, however the stock market is a great deal more volatile. Stock market crashes like the dot.com, Global Financial Crisis and the Global Pandemic have been devastating for Super accounts. Despite the recent crash, there always seems to be news of 'looming stock market crashes'.
Property markets do have ups and downs, but generally not as violent on the downside.
Leverage
Industry and Retail Super funds don't offer you the ability to borrow money to invest. Even if they did, it would be incredibly dangerous to borrow $100,000 to secure a $400,000 stock portfolio that could lose $200,000 in a GFC style crash.
SMSF's do allow borrowing for property. While there is always risk in borrowing money, Australians are very familiar with the concept and risks. Large deposits and a management fund, many of these risks can be handled very well.
Australians using Industry and Retails Super funds are retiring with around $350,000 after 45 years of working. That doesn't sound right - and it's not working comfortably for retired Australians.
What's going wrong with Super? Fee's? Performance? A lack of active Fund Management or advice?
A well selected property purchased 10-30 years ago could easily match or exceed that wealth. The clients in this report are likely to achieve a great deal more than $350k in Super over the next 10+ years.
Talk to our team and unlock a new future
The Able Investor will connect you with a team of businesses (Property Agents, Accountants, Mortgage Brokers etc) that have been working together for many years to help ordinary Australians use there Super to invest in Property for a better retirement.
Their service is obligation free. They provide all the information you need to decide if property investment in Super is right for you. Your choice to proceed or not is always respected.
It's also good to know that you won't need to pay a cent from your own pocket. All service and set up costs are payable from your Super Fund IF you decide to proceed.
Your enquiry today could provide a life-changing path for retirement.
Click below to see if you qualify.
WHAT CLIENTS ARE SAYING
"I don't leave a lot of reviews, but I was genuinely blown away by how efficient this service is. The team was upfront and very helpful, walking me through what was to be an otherwise daunting and frustrating experience."
Gary - Brisbane
"It has been a pleasure working with you, Luke and your team. You are professional, progressive and across the latest guidelines and strategies, which is what I have been looking for with my financial future. This is why I have found it reassuring to put my trust in you all. I have no hesitation in recommending your business to family, friends and other associates."
Annie, Temora
"Five months ago I thought Mitch was too good to be true. I thought, I'll give this bloke 10 mins before I shut the laptop down. Now I have a unit in Footscray and haven't spent a cent on it Thanks heaps mate, my Christmas is going to be a huge one. It's amazing knowing whatever happens in 15 years time, I'll always have a bed to sleep in. Thanks heaps."
Matthew, Melbourne
* This post is for educational purposes only and is not intended to be financial advice
* All information presented are from actual client results
* Results from past performance should not be considered a guarantee or indicator on future performance
* Property in a super fund can only be used for investment purposes. Neither you or your family can live or holiday in the property
* Valuation & rent estimates taken from RP Data
* Annual growth estimates are approximate and based on total period growth
*Ownership periods are based on days owned
* Investment growth is based on the deposit taken from Super and does not account for expenses or super contributions
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