Gordon Wealth

Hello,
My dad has recently been dealing with 'Gordon Wealth'.
He has had two meetings.
1st they came to my grandmas house to meet. 2nd my dad went to their office in the city.
My father has never owned a house or invested before. Apparently, they want to take a large sum out of his superannuation and use that to be able to get a loan off the bank to purchase a house.
How did this come about? Well I'm under the impression he just received a random phone call from them one day. He is meeting with them again and is feeling very keen due to how sparkly and shiny everything is being made out to be. He wants me to sit in on his next meeting and tell him what i think. My father is in no way internet savvy and asked me to look at their website on his behalf but i could care less about websites,
Just wondering if anyone has had any dealings/heard of/knows people/has advice on either Gordon Wealth or this situation.

Thankyou very much if you can help,
Concerned daughter

 

Do NOT do it.

 

Hey Sackie,

Im on your train of thought, but can you please explain more in depth as to why not. I want to be able to explain to my Dad.

Thank you

 

It seems they are Real Estate Agents, Mortgage Brokers & Financial Planners.

Their website screams out 'Property Spruikers' but I'm happy to be proven wrong.
Although the real estate licence provided at the bottom of their website expired in May this year.

...and yes, it seems they use telemarketing to get leads.
Gordon Wealth- telemarketers ringing at dinner time

 

How'd they initially get in contact with your Dad?

What exactly are they proposing he do? Create a self managed super fund for him and purchase an investment property?

They have two different ACLs on their website which is a little confusing.

 

Generally..... how do they get paid? If they get paid by the developer of the properties, they cannot be acting in your best interests.

 

Couple of things - SMSF finance is now limited to quirky, non-bank lenders who, because of their niche, can charge a fortune and there's nothing you can do about it.

Very difficult to refinance SMSF loans, too.

How old is your Dad? If he's close to retirement, buying property seems an 'unusual' choice given he could get better gross yield from shares, with more liquidity and fewer costs.

This is how Gordon earn money -
*Setting up SMSF
*'Advising' on SMSF/Accounting fees
*Commissions from developers - usually around $20k per property
*comms from the banks for setting up the loans.

As you can see, the benefit is so weighted to the person setting it up, it becomes very easy to sell it without any regard for the fate of the person being sold - it rarely ends well.

 

Jesus Christ why do people fall for these things. I hate these parasitic scum. Run a mile

 

I really hope he doesn't do this. Apart from anything else, the costs associated with setting up and maintaining a SMSF will bleed his super fund dry.

 

well who do you think will be billing them for the smsf setup? The ‘advisors’ are chipping at this at every step.

 

Company licence has expired but the personal one is still current but not listed as associated.

 

Hi there, if they are interested in SMSF - seek a qualified and reputable second opinion. Nothing wrong with SMSFs as long as you can partner with a quality, reputable firm with a track record of client satisfaction and success. A quick google search and you should have your answer on the said firm.

Great to hear you're taking care of your parents.

Cheers Ivan

 

Door to door or phone cold calling of superannuation access strategies as a guise to sell property is a serious concern. May be worthwhile reporting this conduct to ASIC. Its potentially illegal. Real estate firms may not market superannuation products. Superannuation in all its form is a financial product and decisions to release funds is financial advice. Only a licensed financial adviser may consider all the client needs to give advice. Selling real estate isnt a regulated financial product.

They mention tax and seem to talk about their advisers etc... No mention on the Tax Practitioners Board website. Hmmm. I dont see a AFSL either. Definitely cant discuss super. AT. ALL.

Release of super money may financially disadvantage retirement. I would think seeking INDEPENDENT advice about this option may be sensible BUT seek the advice perhaps from someone who can advise on the proposal and NOTHING ELSE.

I suspect that one of the reasons for using super is it means an arms length lender isnt doing valuations etc and people may make a lot of money out of selling dud property. Warning bells are ringing.