The exponential growth in the self managed super fund sector creates opportunities for mortgage brokers to develop specialist knowledge in a complex area, adding real value to their business and their SMSF clients, says Doug Lee, Head of Mortgage Sales at Macquarie Adviser Services.
He was commenting on the second Macquarie Practice Consulting Mortgage Broking Benchmarking Report, released recently, that found that SMSFs offer an opportunity for brokers who are willing to invest the time and effort to gain the necessary specialist skills, supporting their clients to expand their SMSF investment strategies into residential property.
The report says: “Although SMSFs now represent only 2% of new business for brokers, 9% 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 adds that SMSFs’ popularity can be attributed to the control its gives fund members – both in terms of how their fund operates and where they invest.
There is also a great deal of flexibility to invest in a range of asset classes, including property. Currently about 15% of SMSF money, according to the Australian Taxation Office, is invested in property, including commercial real estate. (But) now SMSFs can borrow to invest in property, it is likely the allocation to property will continue to grow.”
Lee says 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. 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,” he says.
