Clients in SMSFs and Industry Super now have the chance to build their asset collection by purchasing more than one property within a short space of time.
Acuity Funding has launched a “Loyalty Plus” rewards program, which allows clients to invest in residential property, including their own home. Approved funds will lend clients up to 95% of the value of their fund, with no mortgage insurance, but a $1,100 risk fee.
Acuity Funding managing director Ranjit Thambyrajah says clients have the opportunity to build up quite an asset collection. “Most financial planners, when they’re trying to assist people better invest or have better management of super, if they’re talking about industry super then there’s very little a client can do to tap into it,” says Thambyrajah.
“For financial planners it really opens up a massive market because it could now tap into people who only have industry super and enable them to invest into properties... Whereas before, to get into that area, the client needed to be of a high net worth or high income earning whereby they could have a very large SMSF to be able to do it; now the average person can do it,” he says. “And that way it could possibly triple their business and the client base they could actually service.”
Thambyrajah says it would be particularly good for planners to target young people looking to buy their first home, or parents who want to help their children with their first home purchase. They can put the loan into their child’s name, with no liability or guarantee for the loan. Their investment fund will be returned after three years, and they can then help their next child.
The funds are APRA and ASIC approved, and Thambyrajah says returns are currently about 5%-plus at the moment.
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Golden opportunity for planners
Increased engagement in industry funds
Clients to enjoy ‘perfect storm’