Accountants & Financial Planners Are Letting The Tail Wag The Dog

Accountants and financial advisors are letting the tail wag the dog when it comes to self-managed super funds and property investment.

That’s the message from Michael Sloan, the managing director of The Successful Investor, who is shocked by the number of professionals selling their clients short in this area.

“Buying a property inside your SMSF is clearly the flavour of the month, and the growth in this sector has been rapid,” says Michael, who is also an external property adviser to the National Australia Bank. But it seems that many clients aren’t getting the advice they need in this area. A financial adviser has a lot to say when a client decides to purchase a particular parcel of shares for $400,000 in their super, but they are remarkably silent when the same amount is being spent on an investment property. The reason is simple – most accountants and financial planners don’t know enough about investing in property to assist their clients. So they leave the entire decision to the client, and many clients are getting it wrong.”

The growth in SMSF property investment is booming, with analysis from the SMSF Professionals’ Association of Australia and Australian Tax Office showing investment in residential property rising 17.72% to $20.5 billion in the 12 months to 31 March 2014.

So what are some common tips that advisors can offer their clients?

“It sounds boring, but standard residential property in a standard residential area is the safest option. Investors should stay away from student accommodation, buying in the US, holiday accommodation and other niche market properties. Unless they are experienced in property they should also stay away from commercial property, because even well-placed commercial property can lay vacant for months, putting a strain on finances.”

As with any purchase, the rule of buyer-beware applies to selecting suitable investment property advisers, Sloan cautions, warning advisers to be wary of companies with unscrupulous operators before recommending them to clients.

A list of 21 questions advisers can ask anyone trying to sell an investment property is available at within the Property Tool Kit section.



Further details: Michael Sloan or 0417 577 597.

About Michael:

Michael is the founder and managing director of The Successful Investor, an independent property investment advisory firm. A real estate industry veteran with more than two decades experience, Michael holds a full real estate licence and is also a qualified financial planner, mortgage broker and investment property advisor. His work has been recognised with many awards, including Mortgage Lender of the Year.

Michael’s strong ethical standards and experience in providing property education has been recognised by the National Australia Bank, which appointed him as an external Property Investment Advisor. His articles and contributions can be found on NAB’s website in the ‘Help and Guidance’ section.

A commitment to increasing the skills (and success rate) of property investors has seen Michael present at a number of property forums and workshops Australia-wide. These education-focused events are driven by his direct tell-it-like-it-is style, and participants are offered candid knowledge to assist them to become better property investors. Michael believes that property investment is more accessible than some may believe, and his passion is to assist everyday Australians create wealth through well-planned property investment strategies.


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