By: Rosemary Johnston- Monday, August 04, 2014
The fourth annual Intimate with Self-Managed Superannuation Report was released earlier this year and offers parallels for the Property Investment Advice Sector.
According to George Lucas of Instreet, the report highlights that there is demand for professional advice about investment strategies that is not being met. To use the report’s terms there are three types of trustee – “controllers”, “coach seekers” and “outsourcers” – and only the first are truly in the DIY mould. THey want control of their money and are confident in their ability to build their retirement nest eggs. But – and its a big but – they surprisingly comprise only 10% of trustees.
The remaining 90% either want to do it themselves but realise they need advice (45%) or simply want to outsource it to a third party (45%). Among the latter, there are two common reasons cited for outsourcing, and both make eminent sense: an honest acknowledgement that they lack the necessary investment acumen and, more practically, it’s simply “too much hassle”.
Is this the same for property investment advice? Is this why clients continue to frequent vendor’s agents for their strategy advice? Is it that we don’t have enough advisors to meet demand? We also need to address the issue that investors and other professionals having limited knowledge about the separation of the product and the advice and payment of fees.