IFA Research
IFA research summary
December 2006
Introduction
This is initial market research carried out on behalf of The Overseas Property Webshow by NMG Research, into IFA attitudes to advising clients on investment in overseas property as a component of their client's investment portfolio.
Background
The Overseas Property Webshow is a 24/7/365 exhibition on the Internet for property developers and agents to promote their developments, world-wide. The webshow guarantees to deliver investor and consumer buyers to the exhibitors, offering minimum level guarantees on sales enquiries. http://www.overseaspropertywebshow.com
This online event is managed by FPL Webshows Limited who have operated a similar online exhibition in the UK financial services sector specifically for an IFA audience and over a period of 3-years has built up a permission-based database of around 10,000 responsive and active UK IFAs and mortgage intermediaries. This webshow is supported by the leading financial service trade associations and many blue-chip product providers and an integral component was the publication of research results across a number of areas for the IFA community. This webshow is found at http://www.ifawebshow.com
This background, knowledge and penetration provided an ideal platform from which to define and instigate the first phase of an ongoing market research project aimed at helping property developers and agents to make use of the IFA channel correctly.
Researchers and scope
The research was carried out by the London-based NMG Research under their brand of IFA Census - the definitive source of IFA opinion. NMG have been a leading researcher in this sector for many years and both FPL and NMG databases were used.
Phase one was a top-level investigation into IFA attitudes to investment and yielded 366 IFA respondents in late November 2006.
Initial observations
From the initial survey, which explored the proportion of IFAs currently advising/expecting to advise clients on overseas property investment, just 10% of IFAs currently advise clients to make this type of investment. The survey shows an additional 25% who expect to advise them to do so within the next 3-years. A substantial swing to give 35% of IFAs involved in overseas property advice.
For overseas property developers or agents, IFAs below the age of 35, directly regulated and expecting commission levels of between 1% and 3% on an introduction are most likely to deliver tangible results.
Summary results
- 20% of IFAs have clients who have no clients with overseas property investments
- 43% had less than 5 clients with overseas property investments
- 19% had between 5 and 10 clients with overseas property investments
- Younger IFAs (up to age 35) are over twice as likely to advise clients to invest
- Directly regulated IFAs are slightly more likely to have more than 5 clients investing
- 10% of IFA respondents currently advise clients to invest in overseas property
- 25% of IFA respondents not currently advising clients to invest in overseas property, expect to do so within the next 3-years
- 33% of IFAs expect to work on a commission basis from a developer or agent
- 66% of respondents believe that a commission rate of between 1-3% is fair if acting on this basis. This was far a simple introduction for a €100K property.
- Respondents between 35 and 55 years old, find rental income most important
For further information, contact:
Neil Hutchinson
Managing Director
FPL Webshows Limited
+44 (0)1202 842200
neilh@fplwebshows.com