Property investment needs regulation

Noel Whittaker
Noel Whittaker

SINCE the Global Financial Crisis, there has been a huge range of reforms to the financial planning industry.

However, one of the greatest problems in this space has been absolutely ignored - that is the lack of regulation in the property investment industry.

Think about this. The property investment industry is virtually regulation free - anyone can wake up, decide to become a property investment adviser, and set up shop giving advice about property investing. There is no licence required, no education or training needed, and no supervisory body.

To make matters worse, property investment "advisers" usually operate without any kind of professional indemnity insurance because underwriters refuse to provide coverage for activities which are unregulated. Consequently, if you suffer a loss due to poor advice you will have no capacity to recover that loss.

ASIC provides no supervision because a property investment is not recognised as a financial instrument. 

Thanks to the government's inability to tackle the problem there is now a stark contrast between financial advisers and stockbrokers who are highly regulated, and property investment advisers, who are unregulated. Despite years of financial education, it is a sad reality that the average Aussie still feels safer in bricks and mortar than in shares.  They are more likely to gravitate to a so-called property investment adviser, with no licence, no training and who is not required to disclose to you any commissions they may receive from any sale to you. These can be as high as $40,000 a property.

If this scares you as much as it scares me, take some action and contact your local federal member. We need adequate regulation and we need it now.

Noel Whittaker is the author of Making Money Made Simple and numerous other books on personal finance. His advice is general in nature and readers should seek their own professional advice before making any financial decisions. Email:

Topics:  financial advice opinion property

Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Local artist is telling some of our most poignant stories

 Lennox Head artist Kate McDowell performing part of the piece at La Boite HWY Festival 2016.

The Adventures of Wonderbabe the Terrible

EDITORIAL: Spinning the roulette wheel of politics for fun, fame and profit

AMERICAN ROULETTE: What gambling teaches us about politics and life. Illustration by Vincent Van Montage

Donald, Vlad and George teach us a valuable lesson.

Love and mercy on the run

REMEMBERANCE RUN: Paying tribute at the Mini Field of Women held as part of the Byron Lighthouse Run last Sunday are: organiser of Rainbow Dragons Abreast- Marian Van Der Kroon, sister and neice of Barb Pinter- Stephanie and and Bonnie Qin, Paula Moore, Barb Pinter's sister Jenny Woodforde, Coordinator of Byron Breast Cancer Support Group- Sarah Sigley and Charlie Roberts. Paula and Charlie were at the Mini-field of women in support of his daughter Lorraine Brown. Barb Pinter, the founder of BBCSG and Rainbow Dragons Abreast passed away ealier this year.

The Byron Lighthouse Run attracted 1200 runners.

Local Partners

Cultural grant for Spaghetti Circus

MULLUMBIMBY'S Spaghetti Circus has won a $75,000 NSW Government Cultural Grant to continue delivering its projects.

Exterminate! Exterminate! The Daleks are coming

BCC Lismore will be screening a limited-run theatrical special presentation event of Doctor Who: The Power of the Daleks animated series from Saturday, November 12.

A much celebrated Doctor Who story is coming to Lismore and ByronBay

Top 5 events at Tropical Fruits 2016

IT'S ON: Tropical Fruits Festival over New Years.

Festival guide hits the streets this weekend

The Living End are coming to Byron Bay

The Living End

The Living End are going on the road in 2017 for a regional tour

Mariah Carey and James Packer discussing relationship

Mariah Carey and James Packer are discussing how to work things out

January Jones: Take time away from your phone

January Jones needs time away from her phone

Mel C won't return to Spice Girls for daughter

MEL C is adamant she won't reunite with the Spice Girls

60's British rock legends to return to Australia

The Troggs will play a string of dates across Australia in November.  Photo Contributed

We all remember 'Wild Thing' and now you can hear it live.

Depp jumps ship from agency of 25 years

Johnny Depp has signed to CAA after 25 years with the United

Orlando Bloom 'buried' Katy Perry in birthday flowers

Orlando Bloom "buried" Katy Perry in flowers for her birthday

Want to own one of Australia's best restaurants?

TOP GONG: Mooloolaba Spice Bar has been named in TripAdvisor's Top 10 Australian restaurants for 2016.

Here's your chance to pick up one of the Coast's favourite eateries

Tough times in CBD: Woolies says goodbye Ipswich

Woolworths in the Ipswich Mall.Photo: Rob Williams / The Queensland Times

The last day of trading will be January 1

Look at me! Kath and Kim home up for sale

Kath and Kim from the iconic Aussie TV series.

'Crack open the Baileys and grab a box of BBQ Shapes'

Hinterland horse stud passed in for $8.25 million

UNREAL: This Maleny estate is incredible.

12-bedroom hinterland horse stud still available

Hit songwriter's Noosa mansion on market

SPECIAL PLACE: The Cintamani estate is going to tender, marketed by Tom Offermann Real Estate.

Is this Queensland's best property?

Ready to SELL your property?

Post Your Ad Here!