Information You won’t get from Unlicensed Accountants #18
Along with this raft of legislative change, the Australian Securities and Investments Commission (ASIC) has also introduced new licensing requirements for accountants who work with and advise Self Managed Superannuation Fund (SMSF) Trustees. Only approx. 10% of accountants have complied with these changes to date.
As such if you, as many, consider your accountant would be your 1st port of call for Financial Advice, they will likely advise you, they are unable to provide the information you require & should consult a qualified Financial Adviser / Planner.
This is general advice only and you should seek expert financial advice from a qualified financial adviser before acting on any of the information covered in these topics.
Why Property Spruikers love Aussie Investors??
A report released earlier in 2019 by Westpac, revealed some worrying statistics including why many Aussie investors end up invested in direct property, with out really understanding why they are making the investment they are making.
On top of this, investors often make these investments using high levels of borrowings. Even with the report indicating big gaps in financial literacy, 43% of respondents considered themselves financially confident. This is despite:
Nearly Half of the respondents did not understand what the meaning of equity was.
48% did not know what an offset account was.
41% did not know what refinancing was.
So what could possibly go wrong for investors you ask, where Sydney median house prices approach $1 million with gearing levels often in excess of 80%?
”You’re neither right nor wrong because other people agree with you. You’re right because your facts are right and your reasoning is right - and that’s the only thing that makes you right. And if your facts and reasoning are right, you don’t have to worry about anybody else”. - Warren Buffet.