PLANNER: I Was Offered $10,000 To Sell Property To My Clients

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Today Business Insider today reports on the growing problem of high intensity sales teams selling property into self managed superannuation funds (SMSF).

According to financial planners, people are signing up to buy property with loans from banks without seeking independent financial advice, pressured by a new wave of aggressive sales tactics from property schemes.

This adds debt and gearing to the super fund with no attention to the personal needs or situation of the fund owner, who could end up with debt they didn’t need.

The managers of the property schemes are so keen to get sales that they offer financial planners enormous spotter fees and/or percentages of sales.

Jenny Brown, head of strategy at JBS financial in Melbourne and an award winning financial planner, says she’s been offered up to $10,000 or 4% of the purchase price if one of her clients buys property for their superannuation fund.

The danger is that people will go ahead with buying for their super fund without seeking independent advice. Brown says property isn’t for everyone and care needs to be taken not to be over-geared.

“There really needs to be appropriate advice for people rather than just flog a product,” she says. “If you are going to go an buy a property, do the due diligence.”

The Financial Planning Association says every person has a unique situation.

“In some cases it may not be in their interests to have this property asset irrespective of the returns they think they are getting,” says the association’s Dante De Gori.

“Without appropriate advice and guidance, self-managed super funds could potentially be the next area we talk about as possible fallout because of the property and the gearing inside those funds.

now read ‘A NIGHTMARE WAITING TO HAPPEN’: Australians Are Being Lured Into Lucrative-Sounding Property Deals Using Their Retirement Funds

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