With recent research showing that 53 per cent of IFAs do not transact any business in the foreign property sector, Prestige Group is concerned these firms could be missing out on lucrative property commission and associated financing.
As this is a vibrant market, Prestige Group, has calculated that an IFA would need to sell two properties a month to increase their commission revenues by approximately £200,000 annually. This income stream would be particularly welcome for most independent advisers in the light of rising compliance costs and growing competition in the market place.
Gerard Murphy, managing director of Prestige Group, commented: “UK consumers are increasingly purchasing foreign property whether for investment, retirement or holiday purposes. However, many IFAs are wary about advising their customers on these purchases as they don’t feel they have sufficient experience or local knowledge. This can lead to advisers needlessly missing out on a lucrative revenue stream, which is only likely to grow in the future. We recommend that if an adviser is not comfortable advising on this sector, they refer their clients to an experienced foreign property investment company – such as Prestige Group – who will be able to provide clients with high quality guidance and advice.”
