SMSFs your ‘biggest opportunity’: Hayek
By
Ben Abbott
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12/09/2011 6:00:00 AM
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1
comments
Blue Wealth Property CEO Dr. Tony Hayek told an audience of Vow Financial brokers in Fiji that SMSFs present “the biggest opportunity” for mortgage broking businesses today.
Hayek said legislative changes in 2007 allowing super fund borrowing for property investment had appealed to Australians wanting ultimate control over where their retirement funds are invested.
Advantages include such assets being protected from bankruptcy, as well as capital gains tax exemptions, which he said is attracting ‘smart money’ looking for gains available through leverage.
Hayek said one third of Australian superannuation funds are held in SMSFs, that SMSFs include over 850,000 members in total, and that the average SMSF value was $960,636.
Hayek urged brokers to think about what they could do to assist their clients to retire better, simultaneously “changing people’s lives” while helping their own business bottom line.
Hayek said the retirement nest egg that could be achieved via SMSF borrowing and investing was 112% better than the average managed fund for a 48-year-old client. He suggested leveraging into property could save Australians from retirement poverty, with only 4% set to have an income over $41,000 in retirement, and 84% likely to be surviving on under $21,000 per year of their own assets.
As part of his presentation, Hayek said that the mortgage broker is the most powerful professional in the wealth creation world. Hayek said in contrast, financial planners had lost trust following the financial crisis, while “conservative” accountatns were focused on maintaining existing tax refund business.
“Mortgage brokers are the wealth creation managers of the future,” he said.
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countrybroker on
12 Sep 2011 11:42 AM
Yes this is a great opporetunity. It needs to be approached carefully as there are a number of "rules' that brokers need to ensure are being met by the loan , such as recourse , and who the borrower is to be and the need for a "bare trust" to own the property.
Lenders are responding , but all of them have their own requirments and rules, ( for example fund size, loan size , bare trust requirements and so on). It is a brokers responsilility to understand the rules and what each lender needs ( for example many will not lend on industrial securities). It is best to educate yourself before going into this market. The other advice would be to ensure that you affiliate with a planner/ accountant who manages a lot of SMSF as they can be a great help with clients and understanding the "rules". Be Careful.