Here’s why financial planners don’t like real estate…


It’s the dirty little secret your financial planner is hoping you never discover.

They’ll very rarely recommend property as an investment option – and there’s a really big reason why.

It seems completely crazy, right?

And despite all the fuss brought up a few years ago in the Royal Commission into Banking and Finance exposing the bad and self-serving advice given by financial planners- nothing was said about why they don’t recommend property.

Yet financebuying a property is probably the biggest financial decision you’ll ever make, yet your so-called “financial adviser” has no wisdom to impart to help guide you?

If you’re expecting some top tips and insider info, you’re bound to be disappointed when a trip to your trusty financial planner for advice on property investing sees you subjected to a barrage of discouragement.

“Real estate is so unpredictable,” they might say, or, “Managing an investment property, tenants, maintenance… it’s so much more work… wouldn’t you prefer to stick with shares?”

Why is this the case?

The answer is simple…

The reality of the situation is this: financial planners don’t make any money out of your foray into property investing.

So, unlike when you buy shares or set up a self-managed super fund, it’s simply not in their best interests to recommend property as an asset class, because in doing so they would be short-changing their own commissions and management fees.

After all, every dollar you invest in property is a dollar you won’t be investing in products that earn them a big fat cheque.

Real estate investing can be a fantastic way to build wealth and secure your financial future, not to mention the psychological benefits that come with bricks-and-mortar investments.

Your “financial planner” may be quick to dismiss your real estate dream, telling you it’s nothing more than a romantic notion with no sound strategy.

And in a way, they might be correct – for every millionaire property mogul, there are loads of unsuccessful investors whose aspirations have never been realised.

But most of us aren’t planning to become the next Donald Trump and buy up half of Manhattan.

Rather, we’re looking for a way to fund our retirement and our kids’ futures or bring in a second income to supplement our day job.

It’s not everyone’s goal to make seven-figure annual returns, it’s merely to achieve modest growth and a secure financial future – which is absolutely achievable through property investing.

Financial planners aren’t real estate experts   property mortgage

It’s important to understand that financial planners aren’t real estate experts.

In fact, some may know less than you do about this asset class.

If you want guidance on your wealth creation options, you’d be much better off seeking advice from an independent property strategist. 

These experts will help you search for a property with growth potential, whilst also helping you to evaluate potential purchases and negotiate with sellers.

Now is the time to take advantage of the opportunities the current property markets are offering.

Metropole Team

Sure the markets are moving on, but not all properties are going to increase in value. Now, more than ever, correct property selection will be critical.

You can trust the team at Metropole to provide you with direction, guidance, and results.

Whether you’re a beginner or an experienced investor, at times like we are currently experiencing you need an advisor who takes a holistic approach to your wealth creation and that’s exactly what you get from the multi-award-winning team at Metropole.

We help our clients grow, protect and pass on their wealth through a range of services including:

  1. Strategic property advice. – Allow us to build a Strategic Property Plan for you and your family.  Planning is bringing the future into the present so you can do something about it now! Click here to learn more
  2. Buyer’s agency – As Australia’s most trusted buyers’ agents we’ve been involved in over $4Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney, and Brisbane bring you years of experience and perspective – that’s something money just can’t buy. We’ll help you find your next home or an investment-grade property.  Click here to learn how we can help you.
  3. Wealth Advisory – We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.
  4. Property Management – Our stress-free property management services help you maximise your property returns. Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years, and our properties lease 10 days faster than the market average.

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Brett Warren is Director of Metropole Properties Brisbane and uses his 13 plus years property investment experience to advise clients how to grow, protect and pass on their build their wealth through property. Visit: Metropole Brisbane

'Here’s why financial planners don’t like real estate…' have 3 comments

    Avatar for Brett Warren

    September 21, 2021 Peter Horsfield

    Yes. I 100% agree with Associate and their comment


    Avatar for Brett Warren

    June 18, 2021 Associate

    As an Associate, this article is very misleading to readers.

    I have summarised a number of items to clarify, and rather correct the authors statements: –
    1) Financial Planners do not receive commission from investment products.
    2) We MUST act in the best interest of the client under the Corporations Act as well as the FASEA Code of Ethics. Moreover, we are not allowed to act should there be a conflict of interest in our advice.
    3) We do not always recommend real estate to clients, as circumstances are vastly different on a per-person basis.
    4) Individuals with a limited ability to meet monthly loan repayments, ongoing maintenance and costs of property should not be advocated to indebt themselves further, if they already cannot pay off their credit cards…
    5) We do cashflow modelling on purchasing an investment property versus shares, as well as other investment vehicles to demonstrate real opportunity costs. Investment decisions are very calculated and articulated.
    6) Property may not be suitable to those who have a lower risk tolerance, where shares/managed investments can be tailored to meet their tolerance/financial goals and objectives.
    7) Property provides little asset class diversification and is highly correlated to macroeconomic risks.
    8) Social security/tax strategy may result in property not being a suitable investment on a per case basis.
    9) Property is an illiquid asset, it takes time to sell property should you require access to monies. You cannot sell a bathroom if you require money in the event of an emergency.
    10) Property purchase may not be suitable for clients who are planning to move into Aged Care/Retirement villages in the short/medium term.
    11) High barriers of entry into property, and is very capital intensive.

    Your Financial Planner understands your personal circumstances, goals and objectives. We are not going to recommend property if it is not in YOUR best interest.


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