Moore on the SMSF property debate

Moore on the SMSF property debate. Last week Morgan Stanley CEO Steve Harker fueled public debate surrounding the appropriateness of gearing in SMSF's for property investments. But is the debate around gearing peripheral? Paul Moore, CIO of PM Capital, argues one of the major concerns for SMSF's is the lack of diversification in portfolios and a concentration of investments in over valued banks and property. Everything that you look at in Australia whether it's a bank, a commodity company, an apartment or a can of coke is 20 - 30 per cent more expensive than overseas. According to Moore, investors are buying property because it is familiar but in many cases they are doing so without fully understanding the dynamics and returns of these investments. Moore views the current situation as being very dangerous and says that lending in SMSF's has him scratching his head. Full interview here