Property investors need advice

self-managed-superannuation-funds/real-estate/property/chief-executive/

27 November 2007
| By Mike Taylor |

A residential property research firm has warned the trustees of self-managed superannuation funds to be conscious of the new rules applying to adding real estate to their portfolios.

The chief executive of Branxton Chase, Andrew Donnelly, said that while the new rules enabling self-managed superannuation investors to borrow money and leverage assets such as property presented tremendous wealth-creating opportunities, they were also fraught with danger for inexperienced investors.

“There has been an abundance of good information out there for superannuation planners wanting solid advice on share investments, but not so residential property investments,” Donnelly said.

“It is truly staggering how residential property investors continue to fall under the spell of spruikers, scammers, unscrupulous real estate agents, emotion, rumour and hot tips for easy fortunes,” he said. “Falling victim to any of these when mixing real estate investing with super planning is a sure way to create cracks in retirement nest eggs.”

Donnelly said that superannuation fund trustees needed to treat property as a financial product, placing it under cold, hard, ruthless scrutiny to be sure it had all the key attributes to deliver good long-term yield and growth.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

2 months 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months 4 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

5 months ago

ASIC has suspended the Australian Financial Services Licence of a Melbourne-based financial advice firm....

2 weeks ago

The corporate regulator has issued infringement notices to three AFSLs whose financial advisers provided personal advice to a retail client while unregistered....

2 weeks 5 days ago

ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test....

3 weeks 3 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND