Planners considering new avenues for advice
Interest from financial planners in residential property advice for their clients is surging, according to the chief investment officer and director of Ironstone Group, Jason Isherwood.
Ironstone, which runs a residential property advice and research firm, Capital 360, was seeing surging interest from planners to provide residential property advice to their clients as their revenue from other sources was shrinking, Isherwood said.
“[Financial planners] have found their revenue world shrinking. The absolute value of [their client’s] portfolios has now atrophied, money [is] flowing into self managed super funds where they’re no longer advising, [and] clients [are] shifting money out of cash into direct residential assets, and again [planners] are not participating in that,” he said.
Residential property makes up a significant portion of client’s assets, and they were fundamentally unadvised around the investment decisions and how they go about the process of acquiring an investment property, Isherwood said.
“The private banks and the higher net worth dealer groups are actually using us in particular because they have a number of clients who are very property centric, and they find that they can’t really have a discussion with the clients, and it also provides them with additional income streams,” Isherwood said.
It also centralises and provides a single point of accountability, rather than the client liaising with different parties to buy and renovate and manage the property, Isherwood said.
Recommended for you
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
