SMSF growth creates opportunity for brokers
The incredible growth that has occurred in the self-managed super fund (SMSF) sector creates significant opportunities for mortgage brokers to develop specialist knowledge in a complex area, according to Doug Lee, head of Mortgage Sales at Macquarie Adviser Services.
Commenting on the second Macquarie Practice Consulting Mortgage Broking Benchmarking Report last week, Lee said that for those brokers willing to support their clients in expanding their investment strategies into residential property, SMSFs offered a real value-add.
"Although SMSFs now represent only 2 per cent of new business for brokers, 9 per cent of Australians surveyed for Macquarie's Mood, Life and Money project already had an SMSF, and more than double that number are planning to manage their own super in the future," the report said.
The investment flexibility within SMSFs was also highlighted, with trustees able to invest in a range of asset classes, including property.
"Currently about 15 per cent of SMSF money, according to the Australian Taxation Office, is invested in property, including commercial real estate," the report continued. "(But) now SMSFs can borrow to invest in property, it is likely the allocation to property will continue to grow."
According to Lee, the growth in the SMSF sector is an opportunity for brokers to specialise and to strengthen their SMSF client relationships.
"There is real potential here for brokers who wish to specialise in this area to forge strong relationships with other finance professionals such as planners or accountants," he said.
"Brokers bring to the table their knowledge of loans, while planners can develop the clients' long-term financial strategies.
"They can complement each other, and, in the process, strengthen their relationships with their SMSF clients by providing a seamless experience," Lee concluded.
AUTHOR
Staff Writer
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