Why SMSF Investors Are Perfect For Retail Fundraising
When raising funds for your offer, it is important to make sure you are targeting the right audience and investor demographic. It’s essential to source people with both the desire and the capability to invest, to ensure your marketing efforts are viable.
In Australia, Self Managed Super Fund – or SMSF – investors are ideal prospects for retail fundraising offers. This is because they’re in control of their money and have significant funds at their disposal, which they are able to invest at their discretion.
One of the main reasons people use an SMSF rather than an existing industry super fund, is to take control of their finances. Instead of paying a third-party fund manager to make stock picks for them, they have the freedom to make investments based on their own judgement.
Self-managed Super Funds are becoming increasingly common in Australia, as SMSF providers continue to make managing your own investments easier than ever before. In fact, data shared by the ATO in 2017 shows that SMSFs control almost a third (32.6%) of all superannuation money in Australia, a substantial increase from just 20% in 2004. These numbers clearly show that Australians are starting to catch on the benefits and growth of this investment option.
The way Estate Baron structures its investment offers for developers means that investors take on no debt, while receiving anywhere between a 10% and 20% annual target return. SMSF investors will routinely invest upwards of $50,000 and even hundreds of thousands in each offer, which allows the developers to meet targets more efficiently and hit their funding goals faster.
This is far superior to any other options currently available to investors, while providing developers a cost-effective method to source the capital they need.