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'Dodgy operators remain an on-going problem': Fight against spruikers intensifies

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Australian Broker | 31 Oct 2013, 07:00 AM Agree 0
One property industry group has launched a fresh set of initiatives aimed at reigning in property spruikers and other 'unscrupulous operators'
  • GC | 31 Oct 2013, 10:09 AM Agree 0
    PIPA has no power to stop these activities and should leave it to ASIC. These practices have been around for a many years since the days of Henry Kaye and havent been stopped yet and probably never will. Unfortunately its up to the client to do their own due dilligence and most are just too lazy or dont understand the complexity.
  • SteveL | 31 Oct 2013, 10:19 AM Agree 0
    Just like NCCP this won't stop the dodgy players in the market. They will ALWAYS find a way. What needs to happen is better client awareness and education and a willingness from people to take responsibility for their decisions. I personally trusted a financial planner who got me into a terrible situation. But that was completely MY FAULT and I accept that. I should have taken MORE responsibility. I should have researched myself. What i didn't do was lay the blame anywhere else but myself. Far too many people play the blame game these days and always...buyer beware!
  • Country Broker | 31 Oct 2013, 10:22 AM Agree 0
    Hopefully the industry will be regulated and subject to strict licencing and regulations just as the credit industry was . Time for the coalition Government to step up here , PIPA needs to Lobby heavily to get it done id they are serious
  • Dean | 31 Oct 2013, 10:27 AM Agree 0
    Ha Ha..."leave it to ASIC". What planet do you live on GC?
  • GC | 31 Oct 2013, 10:41 AM Agree 0
    Country Broker:
    I live on a fantasy planet where ASIC chase down the real issues, cowboy brokers, stop harrasing professional brokers and do what they are paid to do. It's nice here - you should come visit.
  • Lj | 31 Oct 2013, 10:43 AM Agree 0
    What a rediculus concept. The same email received with this story in it was followed by another story titled "New home sales reach two-year high".

    The question is, Do you want regulation or do you want growth?

    As a broker and realestate agent, isn't it up to the valuer to ensure that the property being purchased is within approved values? And if you, as a purchaser, buy a property without doing a valuation or ignoring the valuation conducted than you deserve what you get. And if your worried about commissions being paid, why not just ask?
  • Kay | 31 Oct 2013, 10:52 AM Agree 0
    I hope it is not too little too late. Property marketing firms are paying brokers 3% comms to business partners (Brokers & Financial Planners) most of whom do not have a real estate licence (read illegal). The marketing and comms could be as much as 10% of the purchase price ... ofcourse they are buffered into the property price which affects the valuations... affecting the finance broker - client relationship for life. There is different mob out there - flogging the buy 10 properties doubt free in 10 years .... this is where PIPA really needs to act and act quickly in conjunction with the office of fair trading and ASIC ... you don't get people hooked on wealth creation to read or believe information - its much like the cigarette package campaign :)
  • Rosemary Johnston (PIAA) | 31 Oct 2013, 11:12 AM Agree 0
    Investors are continuing to struggle to recognise an ethical property investment advisor versus a dodgy one. Without an independent body, such as ASIC, recognising the credentials of those who are qualified and those who are not it will continue to be a rocky road for investors.

    What PIAA finds is it makes investors more reliant on advertising, websites and magazines which have strong vested interests. I really appreciate the comments above however until we have a reference source for investors to do their homework with the less sophisticated continue to be more vulnerable.

    Asking how many properties you have is a poor substitute for professional and transparent services.
  • Old Joe | 31 Oct 2013, 11:21 AM Agree 0
    As long as Real Estate is not a financial product under the Act, you can say and do whatever you like as long as you disclose and have a clean contract in regards to the sale. The SMSF are having a go at the moment but as long as its property is in the advice and its outside super all is fair in love and war.
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