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ISCOVER
Jessica Darnbrough
Brokers looking for new business opportunities should look closely at the self-managed super fund space, one industry stakeholder has claimed.
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Speaking to The Adviser, Loan Market Group’s executive chairman Sam White said the $420 billion sector is currently growing by 10 per cent each year, making it a very lucrative market for brokers to tap into.
“We are seeing commoditisation start to come in, so prices for SMSF products are coming down. It used to cost $8,000 to $9,000 to get a client into this type of product, but it now costs approximately $4,000 to $5,000,” Mr White said.
“A lot of commentators are embracing the concept of both using and borrowing from SMSF. It is a growing market and a specialised market. For brokers that embrace this lending area, there are a lot of opportunities moving forward.”
Mr White’s comments come just days after the Australian Taxation Office announced it would allow fund members to use money from inside their fund to renovate their property.
Previously, the ATO said SMSFs could not use money from any source to improve property.
In addition, over the past two months, three new lenders have entered this space, injecting some much needed competition into this lending sector.
