Property use in SMSF leads to huge spike in research requests

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A leading property research advisory firm has been surprised by the sudden spike in demand for single property research reports, and believe that SMSFs may have something to do with it.

Nyko Property director Bill Nikolouzakis said the number of advisers seeking independently researched direct investment properties has increased significantly since FoFA regulations were announced.

Since 2008 the company has worked with more than 200 financial advisers, accountants and intermediaries to source and research investment opportunities for their clients, and about 36% of these are for SMSF portfolios, he said.

In the 2012-2013 financial year, Nyko Property saw a 47% increase in sales, and there this financial year has already experience a further 22% increase with two months still to go.

Additionally there has been a 21% increase in sales referred by financial services firms in comparison with agents.

“We believe much of this growth is largely in response to regulatory changes,” Nikolouzakis said. “Advisers are seeking impartiality when it comes to selecting investments for their clients.”

A focus on macro trends, independent valuations and quality residential and commercial properties will help advisers ensure property investment recommendations were in the best interests of clients, he said.

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