The regulations are changing to require a Financial Plan to be provided if you are recommended this strategy by any one. Expect it to be a requirement  by September 2010. This will stop Accountants being able to actively be involved in assisting clients unless they are qualified.

The concern is to ensure that people taking up this strategy are fully infiormed. I specialise in this area and there is no plan to stop the practice, rather ensure people are fully informed. Cooper review recommendation is to maintain the option but monitor it.

Costs total of $3/5,000 to set up get the advice. Bank interest is usually the standard variable on residential with an extra legals of approx $1500. Commercial is a little more but still within the range  if doing it direct.