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Brokers urged to help drive out property spruikers

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Australian Broker | 30 Jun 2014, 08:53 AM Agree 0
Brokers should get behind efforts to regulate the investment property sector, an industry figure has argued
  • Regional Broker | 30 Jun 2014, 10:49 AM Agree 0
    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 .
  • Miriam Sandkuhler | 30 Jun 2014, 11:14 AM Agree 0
    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
  • Colin Rice | 30 Jun 2014, 11:21 AM Agree 0
    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.
  • Papery | 30 Jun 2014, 03:25 PM Agree 0
    Agree whole heartedly...... many Spruikers are either Brokers themselves or employ Brokers & are pretty slick with the sales pitch when they suck the consumer in...& Conflicts of Interest are never discussed.
    NOt sure how you can drive any one out of an industry when they havent technically done anything wrong...
  • Rosemary Johnston (PIAA) | 30 Jun 2014, 05:23 PM Agree 0
    Colin, I think we need to aim for higher business standards to separate the spruiking real estate element from the professional property investment advice sector. Advice in writing and back with PI insurance. That makes it accountable!
  • SteveL | 30 Jun 2014, 08:20 PM Agree 0
    One way to take control. Always MAKE the contract subject to val coming in. Don't go unconditional unless this is met. There are plenty of providers that will do this for you if you push them.
  • Colin Rice | 01 Jul 2014, 11:03 PM Agree 0
    I agree Rosemary. I have dealt with property companies that do the right thing, well at least in the deals I have put together on there clients behalf.
  • Colin Rice | 01 Jul 2014, 11:05 PM Agree 0
    Steve L, which providers offer uncon subject to val from your experience. Thanks in advance.
  • SteveL | 02 Jul 2014, 10:07 AM Agree 0
    Hi Colin, I have sent you a linkedin message addressing this. The real damage isn't in the capital or major cities, but the speculative investing in mining towns and alike. We are seeing a lot of people promised the world in high rental yields only for this to be wiped out in a few short years, and the vals falling accordingly. I think those sales guys wore white shoes too!
  • Andrew Edwards | 03 Jul 2014, 08:36 AM Agree 0
    Always a tough topic as being a mortgage broker I am always asked if I know anyone who specialises in investment property.

    The difficulty we face is that pre-approvals will never turn into fully approved loans if clients don't purchase a property. I work on 100% commission and can put in up to 10hrs work that I don't get paid for until settlement.

    Most clients are really slow in finding a place because they are time poor and don't know or trust anyone to show them appropriate properties.

    In the past 12 months I have had 6 pre-approvals expire (valid for 3mths). It was only until I started making it happen for my clients the expiry rate of pre-approvals dramatically dropped.

    Making it happen means constantly calling clients and getting them to go out on weekends and look at properties.

    I do have a company I trust 100%. It took me a long time to find them and I met literally dozens of companies that to me were nothing more than property marketeers making very handsome profits promoting any property they could get their hands on.

  • Rosemary Johnston (PIAA) | 03 Jul 2014, 09:24 AM Agree 0
    Great comment Andrew! The needs of your business and the needs of your clients at odds due to lack of regulation. PIAA is working on market metrics to create a transparent evidence based assessment of future capital growth. See our forum shortly. This can be used to educate advisors, clients and other professionals. This will help to clear the way for you to professionally assess the property provider when it also includes PI insurance, advice in writing and transparent professional standards.
  • Andrew Edwards | 03 Jul 2014, 11:59 AM Agree 0
    Thanks Rosemary. I would be more than happy to steer my clients to a reputable source such as the PIAA so they can do their own research.

    There is just so much confusion out there and the feedback I get from my clients is they feel real estate agents will tell them anything (fact or fiction) to get them to buy the property they have listed.

    As a mortgage broker I have to be extremely careful recommending anyone or any business because if it all falls in a heap we are held accountable.
  • Miriam Sandkuhler | 11 Aug 2014, 10:01 AM Agree 0
    Andrew and Steve,

    The only truly unbiased advice clients will ever get is from a fee for service Buyer Agent or Accredited Property Investment Advisor.

    This will be strategy and not property driven and is the vest solution for time poor or inexperienced clients.

    Free advice is never free (they pay done the track with poor performance) and rest assured, damage is done investing in capital cities as well as mining towns with high risk attached.

    Miriam Sandkuhler
    Property Mavens
    Director, Buyer Agent, APIA and author
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