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The real cost of free property advice...when 'free' is anything but...

Posted by medicalfinancial on 1 June 2012

Do you know how your property adviser is getting paid?

It’s often said the most expensive advice is that purported to be free. We are champions of conflict free, flat dollar fee for service advice. It is important to us that all members of our deliverables team share this philosophy.

We spent some time researching the property advice space before we were comfortable with the firm we now partner with. As you would expect, they charge flat dollar fees for the advice they give, paid by the clients. So whose interests are they representing? Well our clients of course, as if they don’t deliver, they don’t get paid.

Compare this with the conflicted model of a Buyer’s Agent conjucting with the selling agent. In this scenario the Buyer’s Agent finds a property, agrees a share of commission with the selling agent and then recommends this property to the person they are advising. Whose best interest are they acting in if they are getting paid by the seller of the property?

Potentially even more conflicted is the “professional” adviser who is recommending property and getting paid by the developer, often without disclosing this to their client. We listened with interest on Monday morning to Simon Pressley being interviewed by Steve Austin on 612ABC about this issue. A link to the podcast is below:

http://blogs.abc.net.au/queensland/2012/05/are-you-paying-for-developers-paybacks.html?site=brisbane&program=612_morning

We are serious about clients receiving true conflict free advice in every area of their financial life, including property. So if you are not sure how your professional advisers are being paid it might be time to speak to us.

Author: medicalfinancial
Tags: Website News Wealth Creation

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The information on this site is of a general nature. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions.

The financial planning services are provided by Medical Financial Pty Ltd trading as Medical Financial Planning (AFSL 506557)