Speaking to ifa, FMS Group director Christine Hornery said property is a long-term asset and that regulation would support this attitude within the industry.
“Many investors prefer property investment because it is tangible and they believe that property, over time, will provide capital growth. In my experience this is not always the case,” Ms Hornery said.
“If all property consultants were licensed, it would help to ensure that their focus moved beyond transactional to also consider the long-term effect on the investor’s position.”
Ulton Charter Accountants partner and head of financial planning Kylie Wright said she has seen clients who have been given “wildly inappropriate advice” by a real estate agent.
Acting in a client’s best interest should see all sectors of the investment industry working together to achieve a positive outcome, she said.
“Like any industry, the real estate industry has good practitioners and bad,” Ms Wright said.
“The best work as professionals alongside a client’s accountant, financial adviser and solicitor to ensure the right outcome for the client.
“ The worst give misleading and incorrect advice which can cost clients thousands.”
Matt Kidd, managing director of dealer group Omniwealth Services, concurred with the call for property advice regulation, saying that in some cases the people advising on property have little experience in the market. However, he said he believes the sector will eventually be regulated.
“We put layers and layers of research over our advice, but that’s only because it is best practice,” Mr Kidd said.
“Ultimately, we want our clients to be with us for 10, 15, and 20 years, so if we advise on a property now it needs to be a good property because they are still going to be with us.”
real estate agents are there acting for the VENDOR not the purchaser. To say they ‘give wildly inappropriate advice’ to the purchaser is silly. They are giving great advice for the vendor.
The lemmings buying property in this real estate bubble Australia is experiencing deserve everything that is coming their way. Not only have they succumbed to their stupidity, greed & property spruikers spin but they have significantly contributed to raising the price of a basic human need which is shelter or a home. Investing should not be at the cost of human enslavement to then pay off an overpriced asset for the rest of their lives. It doesn’t effect me but we will all pay a price for this stupidity in the end. For the good of the comunity & working families, Negative gearing on housing needs to be abolished. End of story (please no nonsense about investors providing housing for rent, that’s rubbish, the housing would be built either way).
The fundamentals behind property and the ability to leverage without, the volatility of the share market. Is the key driver for people feeling safer in property. Regulating how it is advised for investments, will ensure clients best interests. Removing the spruikers of the world.
More regulation will not solve the problem – Why not take a leaf out of the book of Harry Triguboff and the Meriton Group – They will not sell property to a SMSF without the purchaser first being assessed for suitability by Cachewise who are specialist SMSF advisers and financial planners.