Albert Park-based brokerage Choice Capital is a step ahead when it comes to capitalising on the SMSF lending market.
Broker Josh Durrant at Choice Capital said the business saw an opportunity early in SMSFs, due to its structure as a mixed financial planning and mortgage broking business.
"We saw an opportunity there, particualrly with the uncertainty in the sharemarket," Durrant said.
"In Australia, bricks and mortar have been seen as a solid investment for a number of years - there are drops and dips but in general growth and stability has been shown over a long period of time.
"With the uncertainty in the sharemarket, people want something more stable - we saw it as a good opportunity to educate our clients and a lot of them have since come on board," he said.
Choice Capital markets its SMSF expertise to its existing client base, which has been built up over a ten-year period since the business started from a commercial lending base.
"At our SMSF seminars, the financial planner will talk about how the stucture of an SMSF works, we'll have a real estate agent or buyer's advocate talking about the property market, and finally a broker will then talk about how to structure the loan and how the banks will assess their application. The seminars are all based around educating our clients”.
"The feedback and business opportunities that have been created from it have been fantastic," he said.
Durrant said SMSF advice fits well within its holistic business model, where brokers work hand-in-hand with planners to advise clients across more diverse financial needs across the business.
"When the broker sits down with a client and they go through the client profile forms, they will ask questions about their current financial position and what they are looking to do in the future. Some of those questions will relate to superannuation and insurance from which can lead to the client being introduced to one of our financial planners," he explained.
Choice Capital added the financial planning arm to the business over 5 years ago. Durrant said since then it has gone from ”strength-to-strength'.
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