By Tim Miller
(Miller Super Solutions)
So we all know that the introduction of services such as Uber have resulted in a steady decline in the value of taxi plates meaning a reduction in the overall asset valuation for some SMSFs but what does this mean for the future?
For a long time SMSFs have invested in assets that have a reasonable value attached to them because of their ability to be leased to small or other businesses and generate revenue but does the growth of services like Uber require us to have a rethink about our investment strategy particularly pertaining to assets subject to a lease. Is it possible that these assets may provide us problems at one end of the scale but opportunities at the other. For our old school clients with old school assets, like taxi plates, we may have to look at the viability of such investments but maybe as we contemplate how to engage with the younger generation and their superannuation needs there is scope to target these services and lifestyle assets as a means of “investing” in the future without it looking like a retirement plan.
The thing is that as I write this I don’t have the answers, I’m just posing the question so we can start to think outside the box. Air BnB is an obvious investment property consideration but we have to think how the internet and accessibility can change the way we invest. Whatever we do we also need to consider the Regulator and their ability to catch up with the trends, Bitcoin is a classic example of this and of a change in behaviour. There is no way any of us would have transacted electronically with “virtual money” 10 years ago but now these digital currencies are becoming more mainstream and SMSFs have the ability to be leaders with these investment opportunities.
PS: If you’re investment strategy is to buy a house to advertise of Air BnB, buy a car to drive random people around while offering them water or to trade in monopoly money then you need to reconsider your investment strategy but at least start to look in to what opportunities are actually out there.
General advice warning:
This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information, so please consult your financial adviser.
Miller Super Solutions is the SMSF education & training creation of Tim Miller, assisting SMSF professionals and trustees with the practices associated with establishing, running and ultimately closing down SMSF’s http://www.millersupersolutions.com.au/