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Conflicts could spear brokers in property advice

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Australian Broker | 26 Mar 2012, 07:00 AM Agree 0
Brokers providing property investment advice have been warned to beware of conflicts of interest and avoid merely focusing on "getting a deal across the line"
  • Andrew | 26 Mar 2012, 10:30 AM Agree 0
    The question about Real Estate Franchises that have in-house mortgage brokerages should also be addressed by ASIC? Surely there exists a conflict of interest?
  • Country Broker | 26 Mar 2012, 10:33 AM Agree 0
    Surley it is about time some one stood up and said , "there may be a conflict of interest here" !! As a broker I have always believed by having a relationship with one investment property adviser we could always be seen to have a conflict of interest - irrespective of what is said.
    I really do not want to be in this market , as I have very good relationships with some independant investment advisers whose job it is to determine what is in the best interests of their client as far an investment is concerned, I cannot do that as a FINANCE Broker it is my job to see the investor enters into an investment property LOAN that is NOT unsuitable for them , or suits their SMSF requirments requirments and legistation . Irrespective if my PI policy covers me I will not be entering into this part of the market any time soon .
  • ozboy | 26 Mar 2012, 10:59 AM Agree 0
    Agree with Andrew, anyone remember Henry Kay? Yet we still have not learnt our lesson. :-(
  • Rex | 26 Mar 2012, 11:06 AM Agree 0
    Isn't it about time all components were considered in the context of all others. The right loan can't be divorced from cashflow, investment, etc. Insurance can't be considered in isolation. Every single financial component has an impact on every other component.
    How about taking the right approach and applying equal scrutiny to all of them
  • Andrew Gardner | 26 Mar 2012, 11:44 AM Agree 0
    I'm not sure how John Moore can give unbiased "advice" to brokers with this warning, seems more like touting for our referrals.
  • Damian Collins | 26 Mar 2012, 12:15 PM Agree 0
    It seems to me that if you are only pushing new developer stock then the advice and product offering can't be independent. A Buyers Agent is as close as there is to complete independence, as they can choose, new old, or whatever property suits the clients. One day (hopefully soon) property investment advice will be regulated and just like financial planners it will have to be fee for service and not commission driven.
  • Gemini | 26 Mar 2012, 12:18 PM Agree 0
    Stop worrying about conflict of interest - anyone who gets paid and sells something has an interest. A hairdresser who advises you to buy their shampoo, A car dealer who advises you that Holden is better than Mazda (clearly a lie), a real estate agent who says a property is a bargain, they are not experts! Get ASIC to pick on them. C'mon, let it go. ASIC are just finding themselves work - now there is a conflict of interest.
  • Property Researcher | 26 Mar 2012, 03:42 PM Agree 0
    The question is how is this system unbiased? The only properties that appear are those that have paid to appear? Conflict of interest? Further how does this rating system improve or eliminate the conflict - it doesn't.
  • Pete | 27 Mar 2012, 01:26 AM Agree 0
    Just take a look at the UK property market - UK mortgage providers have consistently proved they don't understand the housing market and continue to provide "average house price" stats based on what they think should be counted (rather than the actual data). Then tale a look at Professor David Miles on the board at the Bank of England with his fantastic remark about mortgages "It probably never made sense for there to be 100pc mortgages. There may be no price at which it makes commercial sense for such a loan to be available."
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