Firstfolio, via its mortgage management arm New-Loan, has launched an investment product for self managed super funds.
The new product is intended to take advantage of an anticipated shift in SMSFs’ investment preferences from equities to bricks and mortar.
The New-Loan investment warrant, funded by ING, utilises a combination of the property’s rental stream and compulsory superannuation contributions to repay the outstanding loan balance on a residential investment property.
Firstfolio managing director Mark Forsyth said the flexibility of the product would appeal to a wide range of SMSFs, which according to the latest AMP Capital/Investment Trends research, have an estimated $11 billion waiting to be invested.
Forays by other non-bank lenders into this product area have not previously enjoyed much success however wholesale products and pricing manager George Zakher said the market offered tremendous opportunity.
“With the recent turmoil in sharemarkets a lot of SMSFs will look at this and say they don’t want to go through all of this again in a few years time,” he said.
“We are anticipating a push towards self-owned property for self managed super funds.”
Mr Zakher also said the new product was different to anything else on the market.
“There aren’t many products similar to this available, only a handful of the major banks offer them,” he said.
“What makes ours different however is that it gives the fund and the members much greater control. It’s a lot more flexible and easier to get your head around.”
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