Property investment specialist Quantum Group has launched a real estate product for financial planners to support clients investing in residential property.
Quantum PropertyLink Warrant allows financial planners to find, fund, purchase, settle and manage a residential investment property for their clients.
The product has been designed for the fee-for-service advice model where sales commission normally earned by a real estate agent is rebated to the financial planner, who can then choose to reimburse the client.
Quantum managing director Peter Gribble said financial planners have traditionally been limited to direct shares and managed funds because the industry was not equipped to recommend and manage retail property investment.
"We have overcome this problem by designing a very simple structure to encompass an investment property as a financial product, with a product disclosure statement and an independent research rating," he said.
"Real estate agents generally aren't qualified to provide financial advice and planners aren't set up to search and find appropriate properties, so Quantum's PropertyLink Warrant meets them in the middle."
The product is designed so that financial planners can establish diversification for their clients with a prudent level of gearing of up to 70 per cent loan-to-value ratio, Gribble said.
"There is a big opportunity in real estate for financial planners as many of their clients are still jittery from the last sharemarket crash and want to diversify into property," he said.
