subscribe to our newsletter sign up

Be wary of property investment advice, SMSF trustees told

The Property Investment Association of Australia (PIAA) has warned SMSF trustees should be wary of property advice that is not “client-led”.

 

Speaking at The Institute of Public Accountants’ 2014 Tasmanian Congress, PIAA co-founder Rosemary Johnston said property investment advice needs to give a balanced representation of property and be in the client’s best interest.

Ms Johnston told nestegg.com.au’s sister publication SMSF Adviser that investors need such advice because property investment has become a “very popular activity”.

“The confusion arises because [investors] don’t understand what a real estate transaction is… so they are vulnerable to the spruiking end of the market,” she said.

“We also see that professionals don’t understand this either; they don’t understand where the real estate transaction ends and we step into property investment advice.

“It is hard for clients to find good advice, especially when many of the professionals are still confused about where they should be sending them,” she said.

Ms Johnston added, however, that investors who buy multiple properties in an SMSF "are potentially hedging against inflation”.

Be wary of property investment advice, SMSF trustees told
nestegg logo
subscribe to our newsletter sign up
Promoted Content
Recommended by Spike Native Network
Greg Hollands - Numb... - Quite frankly, I am sick and tired of "community expectations" used as an argument. If that were the case, many borrowers from banks would expect the.......
Tough Love - TC, if you are earning just above minimum wage running your business, then stop. Rather than whinge about how difficult it is, just stop. Go and get.......
Jimmy - How many people buy the book and never read it? How many people buy the unshod one's book and never read it? Like the article says, it's simple but.......
Jack - Oh dear ...... investable Income, budgets, Income-producing assets (well, makes a change from ‘growth’ assets, at least), and I suppose we should.......