Brokers urged to help drive out property spruikers

by Adam Smith30 Jun 2014
Brokers should get behind efforts to regulate the investment property sector, an industry figure has argued.

DomaCom head of sales and marketing Warren Gibson has called on the financial services sector - including financial planners, accountants and mortgage brokers - to get behind efforts to regulate the property investment industry. He has urged brokers to join one of the sector's industry associations, PIAA (Property Investment Association of Australia) or PIPA (Property Investment Professionals of Australia).

“Much has been written about investing in the property market particularly in relation to the SMSF sector with concern voiced from many quarters about its appropriateness (given the high cost of property and its potential to overweight portfolios) and the lack of regulation surrounding property. Investors are warned to beware setting up a SMSF for a single property asset, and of the dangers of a lack of liquidity in their portfolio,"" Gibson said.

Gibson said brokers, planners and accountants could drive the "spruiker element" out of the industry, thereby improving public perception of property investment advice.

"If financial planners, accountants and brokers support these bodies and gain the credentials being offered they can increase their client reach extend their revenue potential and bring property into a regulated space. This will help protect their client base and deliver better outcomes.”

COMMENTS

  • by Regional Broker 30/06/2014 10:49:04 AM

    This fellow has a very good point , aggregators and Brokerage groups really need to look at their relationships in this area.

    Will not have anything to do with the "spruiker" element , I will not accept a referral from them , for me it is just too risky , still write a fair share without them. As to joining another profession body - probably not

    I am sure there are ethical people in tis industry, it is just too big a risk .

  • by Miriam Sandkuhler 30/06/2014 11:14:30 AM

    It is good to see credible organisations such as DomaCom supporting regulation of the property sector.

    As a PIAA member and Accredited Property Investment Advisor, I would encourage fellow estate agents to bring legitimacy to the 'property advisory' sector by becoming members - in an attempt to lift the caliber of advice being provided in an unregulated sector.

    Miriam Sandkuhler
    Property Mavens
    Director, APIA and author

  • by Colin Rice 30/06/2014 11:21:30 AM

    If people get an upftont valuation, dont cross collaterlise, and use a trusted advisor who understands how most spruikers operate outside of the organisation flogging the property the legalised theft becomes self evident. If you dont follow the above you are likely to get taken for a ride and may never realise it at best and risk being financially ruined/crippled as a result.