Your correspondent’s article “Lifestyle launch on despite an ATO notice” (Money Management, April 29) could be seen as another example of front page sensationalism, but sadly is better described as inaccurate and even derogatory.
As the article contradicts itself I feel the need to set the record straight in fairness to us, Lifestyle Property Investments (LPI), and to your readers.
LPI is not launching anything, and more importantly, The Residential Property Investors Club (RPIC) is not an investment scheme. It is a membership-based organisation established to provide a variety of services to members, mostly associated with property investment. It is an incorporated body independently operated and will generate its income mainly from tax deductible membership fees and partially from commissions on property sales to members.
It is important to note that properties sold to club members can be substantially discounted owing to the cost savings on marketing and advertising. As the club will undertake this promotion it should be entitled to receive a small percentage. In other words a win for members, a win for the club and a win for property developers and marketers.
The club has a free category of membership (Associate) for financial advisers, most of whom would have one or more clients with a residential investment property in their portfolio.
The purpose of this category is to:
* provide services that will improve advisers duty of care in this specific investment sector;
* be able to refer members without an adviser to a qualified planner who can look after the members overall interests; and
* to provide advisers with another income stream through the appropriate introduction of potential property investors.
Your article merely serves to muddy these aspects of the club because of a commercial dispute between its registered owner and another party.
In any event the outstanding amount owed by LPI has been paid to the ATO and the notice has been withdrawn. The dispute I understand will continue on another level.
The operations of the club will be funded initially by LPI who will be able use the club to promote their projects. However, anyone with an interest in residential property either as an investor, a developer, a promoter or a professional adviser will be equally welcome to participate in and contribute to its development.
The membership database of RPIC will not be made available to financial planners, accountants, developers, marketers or any other organisation.
All promotional material will be controlled and distributed by RPIC to protect the integrity of the club and its membership and retain the confidence of it’s Associates.
I am pleased to be able to put the record straight and retain the good name of Money Management for accurate and fair reporting.
Warren Gibson
General Manager
The Residential Property Investors Club
