Spruiking hype another SMSF attack

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Despite stern comments from ASIC, BGL Corporate Solutions managing director Ron Lesh says property spruikers aren’t being seen as such a big deal in the industry.

“It’s not like we’re seeing that there’s a lot of SMSFs buying bad property. I think it’s more people jumping up and down and looking at some way that they can attack the SMSF industry,” says Lesh.

“Generally, in most cases, if SMSFs are going to buy property they’ve discussed it with their adviser beforehand. I don’t think the spruikers are a big deal and we’re not seeing a lot of evidence to support the fact that they are. I just think we’re seeing a bit more of PR stuff out there.”

Lesh says the main issue coming up for SMSFs is revaluing all assets for market in 2014. BGL and RP Data have formed a partnership to offer clients those valuations electronically and automatically without chasing-up clients. SMSF auditors and advisers will also be able to do a land title search to make sure the property is in the right name, he says.

The system will also make the process safer for those that are worried about lurking spruikers. “If the trustee, before he buys the property, goes back to the adviser and says ‘I’m looking to buy this property can u give me some info on it’, the adviser can be able to get a report on that property – on the history, on other properties in the area – so it’ll certainly help to make a better buying decision.”

Lesh says clients will be able to request residential and commercial property valuations in a number of different forms through their BGL Simple Fund software.

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  • ken on 17/04/2013 9:24:52 PM

    Big Trev, you made your point well! So much domestic property mixed with terms such as "investment" seems to me to be a contradiction!

  • Innocent Observer on 17/04/2013 11:26:00 AM

    Of course he doesn't see it as a problem because he's part of the problem

  • David M on 17/04/2013 10:32:21 AM

    You have got to be kidding. I got "spuiked yesterday" about the $200k myth. Apparently $30k each for a couple is all you need and you can buy a 4x2 in rural qld for $450..and it's right next to a coal mine..and a truck stop..and only 400km from the beach!

  • Concerned on 17/04/2013 10:25:21 AM

    Used properly SMSF are great, but I'm seeing to often Accountants setting up SMSF for balances less than $50,000, one was for $10,000? Then these funds sit in cash or a term deposit. Where is the basis of advice, how will this meet the clients best interest, oh they don't have this requirement? Let's double the clients fees they pay! A shake up is needed in this space!!

  • Pat on 17/04/2013 10:14:47 AM

    Two comments:

    1. I have personally seen a lot of promotion of SMSFs buying properties in the following forms:
    a) On this site, there is always an ad for a mortgage group who will help "grow your SMSF book";
    b) promotional stands in shopping centres promoting SMSFs and properties;
    c) A client of mine had gone to another "adviser" [AFSL and property flogger] whose initial advice was to set up a SMSF to gear into a St Mary's property (they would provide the finance and property).

    2. RP Data - I bought a "comprehensive valuation" for a property from their site to see what it was like. The valuation came in 33% below market value and well below suburb median prices. What does that tell you about the quality of their valuations?

  • Big Trev on 17/04/2013 10:04:42 AM

    What a dick. What all these clowns fail to appreciate is that the pupose of super is NOT to buy property or any particualr asset or to save tax or to pass money to the kids. It is to provide a nest egg to generate a retirement income. Single asset funds are a disaster in the making. Explain how you meet your minimum draw-down requirements of say 7 percent when your single asset SMH is yielding 4% (gross!) off the residential property. Trust me, this SMF crap has dodgy 1990s Tax Effective investment cowboys written all over it.

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