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.”