Embed Size (px)
Citation preview
Chan & Naylor Australia
Marketing Report
September 2014Prepared by
Marco De Gouveia - National Marketing Manager
Chan & Naylor Australia
17/09/2014
2
Contents
Executive Summary .................................................................................................................................... 3
Lead Enquiries via Chan-naylor.com.au Website ...................................................................................... 4
August 2014: Sources of Leads & Estimated Revenue by Source ........................................................... 5
Leads Generated per JVP & Estimated Year 1 Revenue of Prospective Clients .....
Website Performance ................................................................................................................................ 6
Web-to-Lead Conversion Rate ............................................................................................................... 8
PLEASE ALSO REFER TO THE FOLLOWING APPENDICES:
Media Relations Coverage Summary August 2014
3
Executive Summary
Some noteworthy highlights for the month of August:
Lead Volume Growing Exponentially
Since January 2014 Leads has effectively QUADRUPLED in volume.
Month on Month increase of 102% - up from 219 in July to 444 in August.
Year on Year increase of 500% - up from 74 in Aug 2013 to 444 in current period.
Primarily due to Referrals from various Alliance Partners.
Highest Source of Leads was from an Alliance Partner Workshop generating 168 ‘free call’ opportunities.
Media Coverage: In total, there were 11 pieces of press coverage across trade and broadcast
media resulting from 2x Media Releases.
4
Lead Enquiries/Pipeline of Opportunities
Month on Month Increase of 102%There were 444 new enquiries from prospective clients processed in August, up from July’s
219, by 225.
Year on Year increase of 500%In comparison to last July 2013 with only 74 enquiries, there was a substantial Year on Year
increase in in lead volume – from 74 to 444.
The overall lead volume is up in August from the previous month, primarily due to significantly higher
referrals and leads from key alliance partners that exclusively deal with Chan & Naylor.
101 91
130
251
380
314
219
444
0
50
100
150
200
250
300
350
400
450
500
Jan Feb Mar Apr May Jun Jul Aug
No
. of
Lead
s
Month (2014)
No. of Leads Generated
5
August 2014: Sources of Leads
Lead Source Qty of Leads
Seminar - Alliance Partner 1 168
Webinar - Alliance Partner 2 56
Referral - Alliance Partner 2 56
Internet Search 55
Seminar – Property Investor 24
Other 21
Word of Mouth 14
Referral - Alliance Partner 2 14
Referral - Alliance Partner 3 12
Chan & Naylor Book 12
Referral - Existing Client 5
Existing Client Referral 4
Referral - Other 2
Existing Client 1
Grand Total 444
Chan & Naylor Book, 12, 3%
Existing Client, 1, 0%
Existing Client Referral, 4, 1%
Internet Search 55, 12%
Other, 21, 5%
Referral - Existing Client, 5, 1%
Referral - Alliance Partner 3,12, 3%
Referral - Other, 2, 0% Referral - Alliance
Partner 256, 13%
Referral - Alliance Partner 1,
14, 3%
Seminar – Property Investor,24, 5%
Webinar -Alliance
Partner 2 56, 13%
Seminar – Alliance Partner 1 -168, 38%
Word of Mouth, 14, 3%
The main sources of leads in the
month of August in comparison to
July:
↑Seminar - Alliance Partner 1: 168
leads (38% of 444) in Aug; vs July with 3 leads
(1% of 219) - UP by 165 leads since July.
↑Alliance Partner 2:(Combined), 112 leads (26% of 444) in Aug; vs
July with 68 leads (31% of 219)
- UP by 44 leads since July.
↓ Internet Search: 55 leads (12% of 444)
in Aug; vs July with 67 leads (30% of 219)
- DOWN by 12 leads since July
↓ Chan & Naylor Book: 12 leads (2.7%
of 444) in Aug; vs July, 17 leads (7.7% of 219)
- DOWN by 5 leads since July
6
Website Performance
In August there were 6,947 unique visitors to the www.chan-naylor.com.au website.
This was 5.4% more than the previous month, and 10.5% more than in August 2013.
There has been a noticeable trend over the last year of increasing customer engagement with the
website:
o Page views more than doubled from 33,059 to 68,182, a 106% Year on Year increase –
indicating a significant increase in User Engagement.
o Dramatic reduction in Bounce rate with a year on year fall of 96% - Down from 1/3 of
all visitors only visiting a single page, to now only approx. 1 out of every 100th visitor
– signalling that more visitors are interacting with the site more beyond the initial
page view.
o Pages per session almost doubling from 4.17.6 - further evidence of greater user
engagement in that the average visitor views over 7 pages per session in Aug 2014, 3
pages more on average than last year.
These statistics are the result of continuous improvements made to the website and user
experience in addition to regular fresh updates to website content.
Please see Month on Month and Year on Year figures below:
Number of Users
↑ Month on Month ↑ Year on Year
Number of Sessions
(A session is the period time a user is actively engaged with your website)
↑ Month on Month ↑ Year on Year
7
Number of Pageviews
(Pageviews is the total number of pages viewed. Repeated views of a single page are counted)
↑ Month on Month ↑ Year on Year
Pages Per Sessions
↑ Month on Month ↑ Year on Year
Avg. Session Duration (minutes)
↑ Month on Month ↑ Year on Year
Bounce Rate (Bounce Rate is the percentage of single-page visits)
↑ Month on Month ↑ Year on Year
8
% New SessionsAn estimate of the percentage of first time visits
↑ Month on Month ↑ Year on Year
Web-to-Lead Conversion Rate
In June 2014, there were a total of 6,947 website users, 444 of these had completed a lead
enquiry form, which equates to 6.4% – up from the previous month of 3.3% .
Year on Year increase ( 5x ), up from 1.18% in Aug 2013 to 6.4% in current period.
1.2%
1.6%
1.2% 1.1% 1.0%
2.1% 2.5%
1.7% 1.4%
2.1%
4.1%
5.8%
4.7%
3.3%
6.4%
Web-to-Lead Conversion Rate %
Media Relations Summary
August 2014
Public Relations Activity Overview
Following Chan & Naylor’s national comment on why buying is still a better strategy than renting, the remainder of August was focused around delivering thought leading views on the state of regulatory flux and uncertainty within the financial planning industry.
Head of Chan & Naylor Wealth Management David Hasib met with important industry title Financial Observer and his subsequent views relating to why the federal government must consult with the wider financial services industry before making changes to the FOFA regulations were widely picked up in other financial trade titles.
In total, there were 11 pieces of press coverage across trade and broadcast media.
Media releases
12th August, 2014 Chan & Naylor: Rent at Your Peril 21st August, 2014 Chan & Naylor: Government & Power Brokers Must Consult Wider
Financial Industry Before Further FoFA Changes
Interviews
Sky News: Your Money Your Call Financial Observer: FoFA comment API: Various SMSF commentary
Online Media Coverage
Property Observer Eight reasons owning is better than renting: Chan & Naylor Jennifer Duke 12 August 2014
http://www.propertyobserver.com.au/forward-planning/investment-strategy/34379-eight-reasons-owning-is-better-than-renting-chan-naylor.html?start=1
Responding to the RBA’s research discussion paper that looked at whether housing is
overvalued, Chan & Naylor say that owning makes more financial sense than renting.
The Reserve Bank of Australia research, which suggested that house prices would have to
continue to rise at the same rate as that seen over the past six decades to justify buying a
property, may set a dangerous precedent, according to Chan & Naylor managing director
Ken Raiss.
For housing to be financially viable, they would need to exceed 2.4% growth per annum on
the long-term trajectory to beat renting.
“On paper these figures may seem to make stark economic sense, but the property market,
like any other, is cyclical and therefore undergoes peaks and troughs,” said Raiss.
“The other significant factor is that not all properties are created equal. The purchase of a
property, whether it is for owner occupation or investment, must be a business rather than
emotional process.”
He does, however, say that buyers must be looking to purchase properties that out-do
averages and that are below intrinsic value in higher capital growth locations, rather than
relying on average national growth.
While those who do not expect a higher than 2.4% growth per annum statistic to continue
should turn to renting, the fundamentals of buying early, buying right and holding on long-
term still apply, he says.
Chan & Naylor’s eight reasons they think buying is still the best decision:
IT IS FORCED SAVINGS
Australians are some of the worst savers in the world, therefore being forced to put
your money in a long-term asset is a highly prudent exercise that offers reassurance
in later life. There is truth in the old adage that ‘I might retire broke, but at least I have
my house’.
IT CAN COVER YOUR RETIREMENT COSTS
The majority of us are living longer however as was evident from the recent budget it
is clear that the government can no longer afford to pay for the growing number of
pensioners. Having an asset like a house will actually help pay for your long term
stay in a retirement or care facility, something that potentially awaits many of us at
some point.
NOT OWNING MEANS THAT YOU ARE SUBJECT TO RENTAL MARKET FORCES
As a middle aged unemployed tenant you will be subject to the market forces of the
rental market as dictated by your landlord who can throw you out as soon as you fail
to meet your rental obligations. Conversely as a home owner it is more likely that you
can come to an arrangement with your bank should circumstances require it.
HOME OWNERSHIP GIVES YOUR FINANCIAL CERTAINTY
If you have purchased the right property, it will increase in value above the average,
but the amount you have borrowed will remain relatively fixed. Rental income
however increases with the value of the property market, so do you really know what
you will be paying for your two bedder in 30 years’ time?
HOME OWNERSHIP GIVES YOU PERSONAL CERTAINTY
Buy what you can afford now rather than what you necessarily want and you will be
in front as you enter the second half of your life rather than waiting for a late win.
YOU CAN LEAVE YOUR GRANDKIDS SOMETHING
Most people aim to leave their legacy to the next generation and a home is a
fantastic asset to pass on.
BRICKS AND MORTAR ARE LESS VOLATILE THAN THE SHARE MARKET
If the value of the housing market looks like it is on a downward cycle for now, it is
nothing compared to the wild swings of the stock market over the last decade. Where
would you rather put your hard earned money?
THERE IS ONLY A FINITE AMOUNT OF RENTAL PROPERTY TO CHOOSE
FROM
At end of day everyone needs somewhere to live, and as only 30% of the Australian
housing market is owned by investors, limited choice means taking matters into your
own hands.
Your Investment Property Five Ways to Save Thousands on Your Tax Bill Miriam Bell 13 August 2014
http://www.yourinvestmentpropertymag.com.au/news/5-ways-to-save-thousands-on-your-tax-bill-190757.aspx
While most investors are aware that they are eligible for a range of different tax deductions, a significant number do not claim what they are entitled to and/or claim correctly. Yet if you make use of the tax provisions available to you as an investor, it is possible to make significant savings.
Depreciation awareness
More landlords need to become more aware of the benefits of depreciation schedules and claims if they want to save money. Get a registered quality surveyor to put together a depreciation schedule for you and it can pay dividends at tax time.
It is worth noting that it is possible to go back and amend previous returns to claim missed deductions from previous financial years.
Save via scrapping
Another often-overlooked property tax deduction is a scrapping schedule. An example of scrapping could occur if a landlord renovates the kitchen in a property between tenants, Chan & Naylor’s Ken Raiss says.
“A quality surveyor would put the value against all the stuff thrown away – egg: the cooktop, oven and dishwasher. They are then able to claim 100% of the remaining depreciation value left on each item.”
Remember land tax
Register for land tax – even if your property is under the threshold, Raiss advises. “If you are registered you will be sent reminders. This means that if your property reaches the threshold the resulting fees won’t catch you unawares, and there won’t be a penalty.”
Capitalise on repairs and maintenance
When it comes to maintenance and repair claims, many people write off costs they should be capitalising on. However, people need to be vigilant about understanding what needs to, and can, be capitalised, Raiss says.
“For example, if a landlord puts in a new kitchen, that is depreciation – not repairs and maintenance costs. But if a landlord does some upkeep work on the kitchen plumbing that is repairs and maintenance.”
Once again, it is difficult to quantify the amounts you could save in this area – due to the large variability of all sums involved in every individual repair claim.
Claim everything you can legally
It is generally received wisdom that you should always claim everything you possibly can. As with depreciation and scrapping, the amounts that this can save you varies from claim to claim.
However, Raiss says it is worth remembering that:
Tenancy costs - like preparation of a lease agreement or costs associated with evicting a tenant - are immediately deductible expenses.
It is possible for landlords to claim for travel expenses. The costs of travelling to and from properties are deductible.
Getting a split loan, with 2 statements to better track deductable interest, allows you to swap funds between loans (apportioning interest each time). It also helps to get a tax deduction and to reduce compliance costs.
Accountants Daily Chan and Naylor warns FoFA will be lose-lose 25 August 2014
http://www.accountantsdaily.com.au/breaking-news/7623-chan-naylor-warns-fofa-will-be-lose-lose
Chan & Naylor has warned that in its current form, the FoFA regulation will prove to be a lose-lose option for both advisers and consumers.
The firm is calling on all parties with influence to consult with the wider industry ahead of further changes in order to "fix the broken regulation before long-term harm is done to both the financial advisory industry and consumers".
“Currently we are shooting ourselves in the foot by completely disregarding the original intent of this reform,” said David Hasib, a partner at Chan & Naylor Wealth Planning.
“The Palmer United Party’s proposed amendments barely scratch the surface and don’t deal with the underlying issue of how this industry has been behaving over the last 20 to 30 years,” said Mr Hasib. “This is driven by remuneration and right now there are simply are too many noses, with vested interests, in Australia’s financial services industry trough.”
Mr Hasib said that the issue of conflicted remuneration has not been satisfactorily addressed and this will put advisers back in the firing line.
If FoFA passes to law in its current iteration then Mr Hasib believes that this will lead to a number of perturbing outcomes including increased red tape, further consumer confusion and, as the cost of doing business gets inevitably more expensive quality advice will become further removed from ordinary Australians who need it most.
“Before any further changes are made to FoFA, the Palmer United Party and the federal government would benefit from consulting with the broader financial services industry to gain a deeper understanding of the long-standing issues," Mr Hasib said.
“If we can remove the inherent, product selling culture of the 80s & 90s, then it will be to the benefit of all Australians."
Chan & Naylor: Government & power brokers must consult wider financial industry before further FoFA changes 25 August 2014
http://www.professionalplanner.com.au/cut-and-paste/2014/08/25/chan-naylor-government-power-brokers-must-consult-wider-financial-industry-before-further-fofa-changes-30314/
Whilst the Government's proposed Future of Financial Advice (FoFA) regulations will be retained following the recent failure of a disallowance motion in the Senate, leading national accounting and wealth advisory group Chan & Naylor is calling on all parties with influence to consult with the wider industry ahead of further near term changes in order to fix the broken regulation before long term harm is done to both the financial advisory industry and consumers.
"Currently we are shooting ourselves in the foot by completely disregarding the original intent of this reform," said David Hasib, a Partner at Chan & Naylor Wealth Planning, adding that the financial sector has already dropped its duty of care to Australian consumers.
"The Palmer United Party's proposed amendments barely scratch the surface and don't deal with the underlying issue of how this industry has been behaving over the last 20 to 30 years," said Mr. Hasib. "This is driven by remuneration and right now there are simply are too many noses, with vested interests, in Australia's financial services industry trough."
Mr. Hasib argues that the issue of conflicted remuneration has not been satisfactorily addressed and this will put advisors back in the firing line. As such he believes that the entire industry, including dealer groups and product manufacturers, must be held more accountable, particularly as between 80% to 85% of financial planners have some form of institutional ownership (via their licensee).
However, if FoFA passes to law in its current iteration then Mr. Hasib believes that this will lead to a number of perturbing outcomes including increased red tape, further consumer confusion and, as the cost of doing business gets inevitably more expensive; the provision of quality advice will become further removed from ordinary Australians who need it most.
"Before any further changes are made to FoFA, the Palmer United Party and the Federal Government would benefit from consulting with the broader financial services industry to gain a deeper understanding of the long standing issues," said Mr. Hasib. "If we can remove the inherent, product selling culture of the 80's & 90's, then it will be to the benefit of all Australians."
In its original submission to the Financial Services Inquiry (FSI), Chan & Naylor recommended that ASIC should be at the forefront in upholding a widely recognised standard and code of conduct that provides clear and consistent compliance guidelines for all areas of investment and related advice. Having a single set of industry rules with one common outcome will enable the industry to act in the best interests of its clients and achieve the best outcome on their behalf.
Financial Observer
Restrictive APLs to drive adviser exits Julie May 25 August 2014
http://www.financialobserver.com.au/articles/restrictive-apls-to-drive-adviser-exits
The Future of Financial Advice reforms' emphasis on the best interest duty combined with major restrictions on approved product lists (APL) will lead to a move back to independently-aligned dealer groups, according to industry executives.
Chan & Naylor wealth planning partner David Hasib said that during the global financial crisis (GFC), the comfort of a “big brother” institution provided security, so many advisers moved across to protect themselves in uncertain times.
“Post the GFC, quality advisers saw the writing on the wall and started to come out of the shadows of the big instos,” Hasib told financialobserver.
He said while there was no problem with dealer groups being aligned with product manufacturers, there was an issue when advisers were governed by product sales.
“If you look at the APLs of these licensees, they are seriously dominated by products manufactured by the parent company,” he said.
“In fact, not too many institutionally-aligned dealer groups even make money.
“Some are running at a loss. They reduce adviser fees and, in some cases, offer sign-on fees to attract advisers, and then the behaviour is governed by the APL in order to raise profit margins for the owner.”
He added that when a product was crafted around advice and not vice versa, advisers would always be working for the manufacturer.
Institutionally-aligned advisers were largely moving back towards independence because of restrictions on APLs and because products were being skewed towards those of the parent company, he said.
“People say that there is proper disclosure for clients, [but] while disclosure might exist, it comes in fragmented pieces and there is almost a reliance on the client to have to ask,” he said.
He said he supported ASIC’s proposed adviser register and a portal where clients could source “clear and concise information”.
As more advisers moved to specialise in self-managed superannuation funds, less restrictive APLs were important as clients sought different types of investments and investment structures, he said.
“In truth, there are very few genuinely independent groups still left,” he said.
“Off the top of my head there’s us, Matrix [Planning Solutions], Fortnum [Financial Advisers], Paragem and Synchron.
“About 85 per cent of the market is penetrated in some way by the big instos.”
He said he predicted independent dealerships would grow and some new Australian financial services licensees could emerge.
“One way the institutions can counteract this is loosening their APL restrictions,” he said.
“The topic of independence is definitely coming to the forefront. More advisers have been asking the question ‘are we independent?’ and a lot more clients have been asking the same thing.
“If legislation says you must act in a client’s best interest, how can you possibly not be with a dealer group that offers a broader, wider, deeper APL?”
Chan & Naylor is a corporate authorised representative of Patron Financial Services. The independent licensee merged with another independent, Infocus Wealth Management, just recently following the Infocus share buyback from National Australia Bank’s wealth arm, MLC.
Hewison Private Wealth managing director John Hewison agreed with some of Hasib’s comments.
“There is no question institutions favour their products via their APLs,” Hewison told financialobserver.
“Instos say they have other products on their APLs, and while I’m sure they have some, they’re certainly influencing putting funds under their own in-house products.”
He said product manufacturers were not interested so much in the provision of advice as in funds under management.
“They see their advisers as a sales force,” he said.
“If we do see some advisers moving back to the independent space, I don’t think it’s going to be a trend big enough to impact the large part of the market they currently comprise.”
He said it was a catch-22 situation.
“On the one hand, there is a tendency for advisers to want to be independent and have more freedom with their APLs, but then there is the problem of compliance, and that can be costly,” he said.
Independent Financial Adviser FOFA legislation needs wider consultation 26 August 2014
http://www.ifa.com.au/news/13598-fofa-amendments-need-industry-consultation
The federal government needs to consult with the wider financial services industry before making changes to the FOFA regulations that could create further red tape and consumer confusion, according to Chan & Naylor.
Chan & Naylor wealth planning partner David Hasib has issued a statement urging the government and politicians to consult more widely with the financial service industry, arguing that the original intent of FOFA has been lost.
“Currently we are shooting ourselves in the foot by completely disregarding the original intent of this reform,” Mr Hasib said.
“Before any further changes are made to FOFA, the Palmer United Party and the federal government would benefit from consulting with the broader financial services industry to gain a deeper understanding of the long standing issues."
Mr Hasib said if FOFA were to pass into law in its current form there will be increased red tape, further consumer confusion, and it will be harder for people to afford quality advice.
“The Palmer United Party’s proposed amendments barely scratch the surface and don’t deal with the underlying issue of how this industry has been behaving over the last 20 to 30 years,” Mr Hasib said. “This is driven by remuneration and right now there are simply are too many noses, with vested interests, in Australia’s financial services industry trough."
“If we can remove the inherent, product selling culture of the 80s and 90s, then it will be to the benefit of all Australians,” Mr Hasib added.
Money Management Fix conflicted remuneration or face grim future Mike Taylor 26 August 2014
http://www.moneymanagement.com.au/news/fofa/fix-conflicted-remuneration-or-face-grim-future
The Government needs to move further on conflicted remuneration because, right now,
there are too many noses with vested interests in the Australian financial services industry
trough, according to Chan and Naylor Wealth Planning partner, David Hasib.
Hasib is arguing that the issue of conflicted remuneration has still not been satisfactorily
addressed and, until it is, advisers risk being put back in the firing line.
He claimed it was in these circumstances that the financial services industry needed to
initiate consultation to fix the broken regulation "before long-term harm is done to both the
financial advisory industry and consumers".
"Currently we are shooting ourselves in the foot by completely disregarding the original
intent of the [Future of Financial Advice (FOFA)] reform," Hasib said.
Referencing amendments which had been negotiated by the Palmer United Party as part of
a deal to support the Government's regulatory changes to FOFA, Hasib said they had barely
scratched the surface and did not deal with "the underlying issue of how this industry has
been behaving over the last 20 to 30 years".
"This is driven by remuneration and right now there are simply are too many noses, with
vested interests, in Australia's financial services industry trough," he said.
Hasib claimed the issue of conflicted remuneration had not been satisfactorily addressed
and this would put advisors back in the firing line.
"…the entire industry, including dealer groups and product manufacturers, must be held
more accountable, particularly as between 80 per cent to 85 per cent of financial planners
have some form of institutional ownership (via their licensee)," he said.
"Before any further changes are made to FOFA, the Palmer United Party and the Federal
Government would benefit from consulting with the broader financial services industry to
gain a deeper understanding of the long standing issues," Hasib said. "If we can remove the
inherent, product selling culture of the 80's and 90's, then it will be to the benefit of all
Australians."
Investor Daily Original FOFA intent lost: Chan & Naylor Scott Hodder 26 August 2014
http://www.investordaily.com.au/36136-original-fofa-intent-lost-chan-naylor
The financial services industry is “shooting itself in the foot” by disregarding the original intent of the FOFA regulations and has dropped its duty of care to consumers, according to Chan & Naylor.
Chan & Naylor wealth planning partner David Hasib said before any changes are made to the FOFA regulations, the federal government should consult with the wider financial services industry to better understand its “long-standing issues”.
“Currently we are shooting ourselves in the foot by completely disregarding the original intent of this reform,” said Mr Hasib.
“Before any further changes are made to FOFA, the Palmer United Party and the federal government would benefit from consulting with the broader financial services industry to gain a deeper understanding of the long-standing issues,” he said.
Mr Hasib said if FOFA were to pass into law in its current form, then it will lead to a number of unsettling outcomes, including increased red tape and further consumer confusion, and will make it harder for people to afford quality advice.
“The Palmer United Party’s proposed amendments barely scratch the surface and don’t deal with the underlying issue of how this industry has been behaving over the last 20 to 30 years,” said Mr Hasib. “This is driven by remuneration and right now there are simply too many noses, with vested interests, in Australia’s financial services industry trough,” he said.
“If we can remove the inherent, product-selling culture of the '80s and '90s, then it will be to the benefit of all Australians.”
Broadcast Media
Coverage
Sky Business Your Money Your Call 8 August 2014
Media Releases
PRESS RELEASE
Chan & Naylor: Rent at Your Peril
Why Home Ownership Is Something All Australians Should Aspire To
12th August, 2014: The RBA’s recent research discussion paper “Is housing overvalued” sets a dangerous precedent for many Australians who remain undecided about home ownership, according to leading national accounting and wealth advisory group Chan & Naylor.
The RBA argues that if property prices continue on a 2.4 per cent long-term trajectory, the cost of buying a house would be the same as renting, and if housing growth slows to less than 2% then home buyers would be financially better off paying rent instead of a mortgage and other costs related to home ownership.
“On paper these figures may seem to make stark economic sense, but the property market, like any other, is cyclical and therefore undergoes peaks and troughs,” said Ken Raiss, Managing Director of Chan & Naylor. “The other significant factor is that not all properties are created equal. The purchase of a property, whether it is for owner occupation or investment, must be a business rather than emotional process.”
Purchasers must strive to buy property that will outperform the average and in so doing take heed in the old adage "Lies, damned lies, and statistics". This is not as difficult as it may appear, advises Mr. Raiss, if purchasers look at buying property that is below intrinsic value, is in different higher capital growth locations and is capable of having improvements added. Spending time on research should take purchasers out of buying an average result.
“If you agree with the notion that property prices will fail to rise by 2.4% over the long term then fair enough, enjoy being a tenant for the rest of your life. However unlikely scenarios aside there are a number of other very practical and important reasons why all Australians should be encouraged to get on the property ladder if they are able to do so,” continued Mr. Raiss.
It is forced savings – Australians are some of the worst savers in the world,therefore being forced to put your money in a long term asset is a highly prudentexercise that offers reassurance in later life. There is truth in the old adage that ‘Imight retire broke, but at least I have my house.’
It can cover your retirement costs – The majority of us are living longer howeveras was evident from the recent Budget it is clear that the Government can no longerafford to pay for the growing number of pensioners. Having an asset like a house willactually help pay for your long term stay in a retirement or care facility, somethingthat potentially awaits many of us at some point.
Not owning means that you are subject to rental market forces – As a middleaged unemployed tenant you will be subject to the market forces of the rental marketas dictated by your landlord who can throw you out as soon as you fail to meet your
rental obligations. Conversely as a homeowner it is more likely that you can come to an arrangement with your bank should circumstances require it.
Home ownership gives your financial certainty – If you have purchased theright property, it will increase in value above the average, but the amount you haveborrowed will remain relatively fixed. Rental income however increases with the valueof the property market, so do you really know what you will be paying for your twobedder in 30 years’ time?
Home ownership gives you personal certainty – Buy what you can afford nowrather than what you necessarily want and you will be in front as you enter thesecond half of your life rather than waiting for a late win.
You can leave your grandkids something – Most people aim to leave their legacyto the next generation and a home is a fantastic asset to pass on.
Bricks and mortar are less volatile than the share market – If the value of thehousing market looks like it is on a downward cycle for now, it is nothing compared tothe wild swings of the stock market over the last decade. Where would you rather putyour hard earned money?
There is only a finite amount of rental property to choose from - At end of dayeveryone needs somewhere to live, and as only 30% of the Australian housingmarket is owned by investors, limited choice means taking matters into your ownhands.
“Home ownership, like any form of wealth creation, is all about having a purpose and focused determination,” said Mr. Raiss. “Whilst many Australians have an unrealistic ‘lottery win’ view of their future financial independence, it is possible to win your personal lottery with property if you do the research and just have the patience for it.”
According to Mr. Raiss the basic fundamentals of property ownership are buy early, buy right and hold on to your faith in your investment and financial destiny.
PRESS RELEASE
Chan & Naylor: Government & Power Brokers Must Consult Wider Financial Industry Before Further FoFA Changes
Failure to Resolve Conflicted Remuneration Will Lead to Increased Red Tape, Consumer Confusion and Make Quality Financial Advice More Expensive
21st August, 2014: Whilst the Government’s proposed Future of Financial Advice (FoFA) regulations will be retained following the recent failure of a disallowance motion in the Senate, leading national accounting and wealth advisory group Chan & Naylor is calling on all parties with influence to consult with the wider industry ahead of further near term changes in order to fix the broken regulation before long term harm is done to both the financial advisory industry and consumers.
“Currently we are shooting ourselves in the foot by completely disregarding the original intent of this reform,” said David Hasib, a Partner at Chan & Naylor Wealth Planning, adding that the financial sector has already dropped its duty of care to Australian consumers.
“The Palmer United Party’s proposed amendments barely scratch the surface and don’t deal with the underlying issue of how this industry has been behaving over the last 20 to 30 years,” said Mr. Hasib. “This is driven by remuneration and right now there are simply are too many noses, with vested interests, in Australia’s financial services industry trough.”
Mr. Hasib argues that the issue of conflicted remuneration has not been satisfactorily addressed and this will put advisors back in the firing line. As such he believes that the entire industry, including dealer groups and product manufacturers, must be held more accountable, particularly as between 80% to 85% of financial planners have some form of institutional ownership (via their licensee). However, if FoFA passes to law in its current iteration then Mr. Hasib believes that this will lead to a number of perturbing outcomes including increased red tape, further consumer confusion and, as the cost of doing business gets inevitably more expensive; the provision of quality advice will become further removed from ordinary Australians who need it most.
“Before any further changes are made to FoFA, the Palmer United Party and the Federal Government would benefit from consulting with the broader financial services industry to gain a deeper understanding of the long standing issues,” said Mr. Hasib. “If we can remove the inherent, product selling culture of the 80’s & 90’s, then it will be to the benefit of all Australians.”
In its original submission to the Financial Services Inquiry (FSI), Chan & Naylor recommended that ASIC should be at the forefront in upholding a widely recognised standard and code of conduct that provides clear and consistent compliance guidelines for all areas of investment and related advice. Having a single set of industry rules with one common outcome will enable the industry to act in the best interests of its clients and achieve the best outcome on their behalf.
