Property an opportunity for planners
Financial planners should consider specialising in property investment to take advantage of current market forces, according to Property Investment Professionals Association of Australia chair Ben Kingsley.
With four cash rate cuts in 2012 bringing the official cash rate down to an historic low of 3 per cent in 2013, Kingsley said an abundance of attractive home loans had sprung up along with a new wave of investment activity in the property sector.
Recent figures from the Australian Bureau of Statistics in April showed that investment housing commitments rose 1.5 per cent in February 2013, or $115 million, compared to January.
"Combine this with very strong rental yields and low vacancy rates across many property markets, and the impetus to invest in property is stronger than it's been in quite some time," he said.
"And to top all of this off, Australians' mushrooming interest in property investment via self-managed super is only going to add to the opportunities in this space."
Gaining a qualified property investment adviser accreditation would have a significant advantage when it comes to planners attracting and retaining clients, according to Kingsley.
"Any planner who can extend their service offering to property investor clients is going to be very well positioned to grow their business and enhance their bottom line."
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