Brokers should skill up in self-managed super fund lending, or risk future disputes with their clients.
AAMC Training Group's managing director Jeff Mazzini has said that the fastest growth area of lending in Australia at the moment is self managed super funds.
Legislation in 2007 allowed super fund borrowing for property investment. Advantages include such assets being protected from bankruptcy, as well as capital gains tax exemptions.
Commenting in response to an increasingly positive outlook for commercial property, Mazzini said brokers who are not considering SMSFs as an option could be at risk of a dispute.
"In today’s age where Australians are now ranked second behind the USA for suing when things go wrong, I would strongly advise that everyone considers self-managed super funds as an optional area to fund the commercial or investment retail property through," he said.
Mazzini said brokers need to understand whether SMSFs, or stand-alone commercial/investor property structures will benefit clients more. He said training can answer the 'what, how's and whys'.
"Failure to effectively undertake this process may lead to issues for both parties that all could do without," he said.
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