The Property Investment Association of Australia (PIAA) has warned SMSF trustees should be wary of property advice that is not “client-led”.
Speaking at The Institute of Public Accountants’ 2014 Tasmanian Congress, PIAA co-founder Rosemary Johnston said property investment advice needs to give a balanced representation of property and be in the client’s best interest.
Ms Johnston told SMSF Adviser that investors need such advice because property investment has become a “very popular activity”.
“The confusion arises because [investors] don’t understand what a real estate transaction is… so they are vulnerable to the spruiking end of the market,” she said.
“We also see that professionals don’t understand this either; they don’t understand where the real estate transaction ends and we step into property investment advice.
“It is hard for clients to find good advice, especially when many of the professionals are still confused about where they should be sending them,” she said.
Ms Johnston added, however, that investors who buy multiple properties in an SMSF "are potentially hedging against inflation”.
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