IT is almost an understatement to say that superannuation auditor Chris Malkin is a strong believer in holding direct business and residential property in self-managed super funds.
Malkin's SMSF owns a two-storey office block and an inner-city apartment, accounting for almost 65 per cent of the fund's total asset value. Indeed, the fund had an even bigger exposure to property until recently when it sold a commercial building. The remainder of the fund is invested in listed shares and cash.
Malkin, head of superannuation auditing in Melbourne for accountancy and business consultancy WHK, says the sharp fall in share prices "absolutely" confirms that he made the right decision to heavily sell shares in the past couple of years to buy more property.
But as a partner responsible for signing off the annual audits of 3500 SMSFs, Malkin sees firsthand how some trustees run foul of superannuation laws and act against their own interests when making ill-advised property investments.