Wealth creator vs financial advisor

I once was asked if I wanted to start an inhouse conveyancing law firm for a large real estate agent. One of their conditions was that I didn't discourage clients from buying their off the plan properties. How could you do that and be acting in the clients interest!?

 

The apparent entity promoting these seminars is a credit licensee. There is no "partnership". Just a collective of people all who may not act impartially and independently who all want a slice. So when you call up and enquire how can they even mention tax etc ...... One stop shop.

ASIC may have concerns. How much of this can be discussed by a credit licensee ?

...., Retirement Planning, reducing Mortgage or setting up a Self Managed Super should not miss out! We strongly believe that all homeowners and investors should be armed with the correct information and have access to the right experts!

• How to use the new tax laws to leverage your Super and build your investment portfolio
  
• Simple strategies and structures to minimize personal debt, reduce tax and grow your assets
  
• Weighing up the benefits of investing in property both personally or through SMSF
  
• Criteria to choose the right advice and support to build your financial security

 

Just don't

I repeat I dont

 

Terry well done for not proceeding - as you know I work with many lawyers and no one including my firm will be pushed around. We work for our clients who are always our priority. You can have "referral partners" however they should always represent the clients best interests, not the dollar - of course they may choose the dollar and if they choose the dollar over the client - I would immediately cease that relationship.

Most of the OTP property promoters have "large" law firms that give them special deals, they are not protecting the client they are protecting the property promoter.

Cheers Ivan

 

I missed out on about $500,000 (so far)

 

Hey @Mjay81 - lots of warnings here which is great.

I'd add - you always want the accountant, lawyer and broker to be completely independent of your property purchase.

They need to be part of YOUR team, not the sellers.

That way, you've got an extra couple of sets of eyes on your deal and they can point out any potential pitfalls without any conflicts.

 

Ethics honesty integrity is always greater than the dollar brother.

Cheers Ivan

 

Funny - they had a slogan with those words in them!

 

Yep - Most valuation and fee based rip offs occur when a dodgy finance application is pushed past and seemingly meets valuation as a equity release loan is used. The client never sees the bad val on the property. A honest broker (like ones on PC) would see a val issue and comment straight away. Yet the royal commission ignored that. Good brokers do so much more than many think. I question how the best interest rules will change this. Probably wont.

 

Yes and thanks the whole conflict of interest and potential conflicts with a collective arrangement like this scares me!

 

Message coming in loud and clear!
This has been most interesting and educational to say the least cheers

 

Yes very easily hidden by a x-col.

Think it's only a matter of time before it blows up and there will be a requirement to discuss/disclose the impacts of x-col.

 

That would be nice, but I don't think there's ever been a requirement to disclose this sort of thing. Many of the people selling it don't have a clue as to the impact. I don't think the decision makers in the government are particularly savvy about this either.

 

Yes agree but same could be said for many changes that have happened recently.
They tend to come to light when things go wrong.
I think it's a step in the right direction, customers should be aware of what they're signing up for.

 

To all that have contributed and read this thread I do hope this info has not only helped me but will inform others of the models used out there. I realised that under a normal “buying home/investment property would entail a lot of research which takes time into looking at the regions , demographics and developers all of which appear to have been quickly swept under the carpet... obviously I have not proceeded based on the feedback here in which i do trust and gauged a lot of precious feedback.

Another possible red flag is the info below an extract from an email prior to the 2nd appt which is asking for a weird kind of link they provide directly to access your banks account details to “save me the hassle”.. im not exactly the tech dummy but surely this is strange. Again thanks everyone
........
Obtaining all the bank statements required can be daunting and frustrating so the Mortgage Broking Company – XYZ Finance that service our clients provide a fantastic service to take all the leg work out for you!

Please use the below link with your internet banking logins and it will take you to a read only portal where you can select the account above and XYZ Finance will be emailed the correct date range.

Please use: a link was provided
It is very quick and easy to use and will save you lots of time trying to get the right dates etc. from your own internet banking. The site provides a read only format which completely protects your data and information.

......ummmmm thanks but ill pass good luck ...

 

It's quite common these days to use a 3rd party like bankstatements.com.au or cashdeck.com.au or similar to gather all the loan docs in one place, makes it super easy for applicants although I would advise anyone who uses them to 1) ensure it's a reputable company and 2) change your internet banking passwords afterwards

 

Yes very common, but probably best to make contact with the broker first rather than giving access to someone you don't know.