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Mortgage brokers warned not to provide unqualified advice

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Your Investment Property | 11 Apr 2016, 07:51 AM Agree 0
Investors have been given a reminder to make sure the advice they're receiving is coming from those qualified to provide it
  • Kuta | 12 Apr 2016, 07:48 AM Agree 0
    There are no formal qualifications recognised by regulators in Australia for someone to give property investment advice. Can anyone name one recognised course that is accepted nationally by regulators for someone to give property investment advice? Yes you can get a licence to sell real estate for the vendor or act on the buyers behalf of a buyer in tracking down a property to the clients specification. But when someone says to a real estate agent or buyers agent or spruiker or so called property marketer "where do you recommend", "what capital growth do you think I will get" they are in the realm of advice and none are qualified. The out is of course in all the fine print disclaimers on everything the client is given.
    Also from my years of experience in the industry the sale or facilitation of off plan product by Finance Brokers and Financial Planners and to a lesser extent Accountants directly or through a paid referral system to their client is more widespread then regulators or industry bodies care to know about. There is a further sub culture called property aggregators that act as "a go between" between developers and the Brokers, Planners and Accountants and even other property marketers by regularly supplying stock lists, "research reports" and facilitating contracts from developers. One estimation I have heard is that 60% of all off plan sales in Australia today are made by marketing groups not licenced real estate agents. This is a Billion Dollar industry which is unregulated.
    This is the tip of the iceberg and a blight on property investing and why Federal regulators continue to treat this issue as isolated, instead of the organised crime it is then resources to clean it up will not be allocated. These people are not hard to find just put "investment property" into Google and make some phone calls.
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