House or super – which has performed better in SA, and where?

Home value growth has outpaced that of the average superannuation fund over the past 10 years, new data shows.

According to Finder.com.au analysis of 564 super investment options across 191 super fund providers, the average national 10-year performance is 5.7 per cent per year.

Comparing this with the average annual home value growth of the 579 SA suburbs and towns PropTrack has statistically reliable house or unit data – 488 outperformed the average superannuation fund, with the two leaders being Elizabeth North and Unley Park houses.

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Both of these have increased by 12.4 per cent over the past 10 years, significantly outperforming even the top performing growth fund.

Growth funds returned as much as 8.79 per cent per year over the decade, balanced funds delivered returns of up to 7.84 per cent while conservative funds returned as much as 5.98 per cent per annum.

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Adelaide’s northern suburbs dominated the list of suburbs outperforming super returns, with Elizabeth South, Elizabeth Downs, Davoren Park, Elizabeth Grove and Smithfield Plains homes growing by 11.9, 11.8, 11.6, 11.5 and 11.4 per cent respectively.

Edge Realty principal Mike Lao, who sells in the northern suburbs, said properties in the area had performed spectacularly over the past five years after a flat first half of the decade.

As good an investment as property is, Mr Lao said, it works best as part of an diversified portfolio.

Mike Lao, Director/Sales, Edge Realty.

“Property’s had a really good run over the past five years but that may or may not continue, so if you can spread your money out over property and shares, then they can balance out for times when property’s not doing as well.

“Bricks and mortar is a safe haven, and that’s reflected in the bank’s risk capital.

“If you’re borrowing to buy a property, you know, they’ll lend you 80, 90, 95, 100 per cent sometimes.

“If your borrowing to buy shares, they’re going to lend you 50 per cent.”

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Retiree Deidre Oliver, 67, is currently selling her 27 Yarnbury Rd, Elizabeth North property through Mr Lao and is thrilled to hear about the capital growth in her suburb.

“I took a redundancy from the federal public service so this is my super fund, I’m sitting in it – I saw that as a more tangible investment,” she said.

Deidre Oliver is selling her Elizabeth North home, where home values growth has outpaced that of super. Picture: Kelly Barnes

“This is my only buffer and my only income apart from age pension, and it gives me an opportunity to enjoy the rest of my life and it offers me some security.

“The growth we’ve seen here in that period has been an absolute saving grace.”

Finder money expert Richard Whitten said proactive engagement was critical in ensuring Australians had enough super at retirement, and urged people to have just the one fund.

“The younger you are the better your chances of building a big nest egg,” he said.

Finder’s money expert Richard Whitten

“But it’s never too late to start putting a bit more money into your super.

“Consolidating your super means you pay less in fees, leaving more money in your account to build your wealth.”

Super outperformed home value growth in 82 suburbs with the greatest difference being for Roxby Downs houses where values have dropped 4 per cent annually over the past 10 years.

– with Aidan Devine

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