Quantum Group bridges gap between financial planners and residential property
Quantum Group has bridged the gap between financial planners and residential property through the development of a real estate product for self-managed superannuation funds.
Financial planners have traditionally been limited to direct shares and managed funds because they were not equipped to recommend and manage retail property investments, according to property investment specialists Quantum Group.
"We have overcome this problem by designing a very simple structure to encompass an investment property as a financial product, with a Product Disclosure Statement and an independent research rating," said Quantum managing director Peter Gribble.
The product, called Quantum PropertyLink Warrants, enables planners to choose their own property or select from an online, preapproved real estate platform. It is designed so that financial planners can establish diversification for their clients with a prudent level of gearing of up to 70 per cent loan to value ratio.
Gribble said the product offers an opportunity in real estate for financial planners, as many of their clients are still nervous after the share market crash and may want to diversify into property.
"The rental earnings and capital gains have a far more favourable tax structure if the property is acquired through a self-managed super fund, at 15 per cent," he said. "Or if the property is sold after retirement, capital gains can be tax free.
"The interest and capital payments are also 100 per cent tax deductible, which makes property very appealing for people who have set up their own self-managed super fund."
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
