Branching Out - Resimac

feature / self-managed super funds
Mary Sartinas:
A personal word
“The first SMSF loan I wrote was back in 2009. Setting up that
first loan made me realise that once consumers became better
educated around the legislative requirements involving SMSFs,
there would be a greater demand for this type of lending –
which is clearly the case right now.
“Whilst it’s not our role to advise clients whether an SMSF
structure is appropriate for them, it’s imperative to have a
thorough understanding of the legislative requirements, the
legal structure and lender policy, without which we can’t be
effective in our roles as brokers.
“As a broker, you become very closely involved with coordinating
the legal teams that represent the client and the
bank. You also work very closely with the accountant and the
financial adviser. I find myself being the co-ordinator between
all parties involved because quite often there are gaps in the
communication so brokers need to take hold of the reins and
make sure the deal is done.
“Some areas of the bank are still coming to grips with the
legislative requirements so the entire application can be slow
and drawn out.
“We also don’t know what legislative changes there may
be in the future for gearing in SMSF’s. It’s a constantly shifting
platform and we’ve got to be conscious of that before we get
too comfortable.”
32 / branching out
clients for brokers. According
to White, “SMSF’s will be
distributed through agents who
are then affiliated with brokers,
so I expect brokers to take the
majority of SMSF lending in the
years to come.”
Mr D’Alessandro and
Ms Sartinas, meanwhile, are seeing
most of their referrals coming
from accountants who are keen to
increase their share of the SMSF
market in the property sector.
The opportunity to
diversify a service offering
based on increasing interest in
investment property purchases
through an SMSF is clearly
not confined to brokers and
financial planners.
The SMSF market, however,
is a “lucrative” one for brokers,
according to Ms Carter. “Growth
is happening in the purchase
of properties in the inner
suburbs, mainly around large
developments,” she says. “It won’t
be long before the competition
heats up in this area.”
And as St George’s Darren
Little puts it, SMSFs are
‘coming of age’. Self-managed
funds are allowing brokers
to capture a niche market
and add a new item to their
diversification toolkit.
Education remains a work
in progress – and is vitally
important for a broker who
wants to succeed in the
SMSF space – but Mr White
emphasises that the effort
is well worth it. “SMSFs can
increase your income, double
your asset base and provide
you with that ‘client for life’,”
he says.