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Brokers and property advice: The $115 million question

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Australian Broker | 01 May 2013, 08:00 AM Agree 0
With signs of an upward swing in the Australian housing market starting to take shape, one industry body says it's time for brokers to embrace the property advice industry - others aren't so sure
  • Moonae | 01 May 2013, 09:55 AM Agree 0
    Sure - I'll embrace the unregulated property advice industry. My advice - Property is transactionally expensive especially short term, doesn't perform over the long term as well as Shares, doesn't have the concessional benefits of Super as a vehicle and if invested in Super needs to be done through SMSF which is prohibitively expensive and complex. Oh - and I forgot, ask anyone today giving advice on property and they are invariably in the real estate industry as sales people working for sales firms selling their own stock or properties they are agent for. Buyers agents are also unregulated. So lets redraft the question shall we - Property prices are on the up again, people think they can make a buck investing in property lets turn our attention to these often ill informed investors and get our share. I'm feeling a little cynical today.
  • Wayne | 01 May 2013, 10:11 AM Agree 0
    Brokers giving advice on which property to buy suggests conflict of interest issues. Do agree that if all other areas of financial advice is regulated then this is the one loophole the crooks have crawled through. Developer has property for sale at a price and the spruiker comes along and adds $40,000 to the price for himself. Should brokers spruik for sales of property? Sure - if the industry was regulated to get rid of the crooks. Oops I forgot, the government only thinks brokers are the crooks !!!
  • Peter Fast | 01 May 2013, 10:17 AM Agree 0
    Property investment remains unregulated (probably will always be that way) and while it does there will be questions about involvement in giving "advice" about property investment. Agents and spruikers in particular don't give property advice, they give factual information ... or so they say. So while our industry is raising it's professional status any widespread industry move into property "advice" could see that compromised without legislation to oversee real estate investment advice and I just wonder what sort of PI cover a "property planner" has these days?

    Our industry bodies also need to ensure that the Finance Broker Industry is not tarnished by involvement in inappropriate property "advice".

    Let the buyer beware!!
  • Country Broker | 01 May 2013, 10:22 AM Agree 0
    Why are we promoting this again , We are finance and Mortgage Brokers NOT investment / property investment advisers , MY PI policy does not cover me for this type of business . I will give advice now to brokers , do not do it yourself, yes have referral relationships with people who are qualified and respected advisers .
  • Andrew | 01 May 2013, 10:27 AM Agree 0
    Wayne, re conflict of interest, what about RE franchisee owning a Mortgage Broking Franchise? When is ASIC going get involved with this obvious conflict?
  • Papery | 01 May 2013, 01:29 PM Agree 0
    RE Conflict of Interst....you only have to disclose it & manage it. Totally different when you are taking advantage of it...& there is a huge area of grey that he sharks play in.
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