Financial services industry increasingly selling property, SMSFs playing a key role: Nyko Property

Nyko Property director Bill Nikolouzakis has attributed his company's 90% increase in sales in Melbourne in the 2014 financial year to buoyant property market conditions.

However, they sell through 228 intermediaries, with 73% in the financial services industry. This includes mortgage brokers, accountants and financial planners, with the other 27% being a mix of local and offshore estate agents.

“In particular, we had a very busy second half of the year (January-June) following the 46% increase in sales in the 2013 financial year, with demand from the SMSF sector playing a key role,” said Nikolouzakis.

Of their sales, 69% were made by the financial services sector. These were predominantly sales of townhouses and small apartment complexes in Melbourne’s suburbs.

The increase in demand from those selling property in the financial services is down to two points, he says.

This includes the financial services industry increasingly embracing direct property as an investment option, and SMSF trustees becoming more attracted to residential property.

A drop in SMSF investment, to 28% in 2014 financial year compared to 36% in the 2013 financial year, does not have impacted their overall positive views of the market.

“SMSF property investment is being driven by clients of accountancy and financial advisory firms and will continue to be a strong growth area for Nyko Property, despite the slight 8% drop in sales,” he said.

“While we might not see such a high increase in SMSF property investment as we did in 2013, we expect it to continue to be about 30% of our business,” he said.

“One in seven Australians invest in property so financial planners, accountants and mortgage brokers are starting to understand their SMSF clients are investing in property – with or without their advice.

“For those advisors who can value add for their clients by ensuring they are giving strategic advice both in terms of the property acquisition itself, as well as how it dovetails with the client’s investment portfolio, will benefit from growing investor interest in residential property,” he said.