Business

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: noelwhit@gmail.com.

Topics:  financial advice, opinion, property


Stay Connected

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

Wave Rave with Gaz: Boardriders head to Coffs Competition

BOARDRIDERS: Danny Wills takes the bottom turn.

Byron Boardriders head off to Coffs Competition.

Iconic nude beach 'overrun' by sexual behaviour

Stunning North Coast beach overrun with "sex focus and harassment"

EDITORIAL: Remember to invent a time machine soon

LOST THE PLOT: Is the US election shaping up to be a really, really, really ridiculously bad movie. Artwork: Jackson Montage.

One of the most fateful events in the history of the world.

Latest deals and offers

The Byron Beez are set to swarm

BYRON Bay Basketball has now rsettled on the name and brand of their association, Byron Beez Basketball.

Wave Rave with Gaz: Boardriders head to Coffs Competition

BOARDRIDERS: Danny Wills takes the bottom turn.

Byron Boardriders head off to Coffs Competition.

Iconic nude beach 'overrun' by sexual behaviour

Stunning North Coast beach overrun with "sex focus and harassment"

EDITORIAL: Remember to invent a time machine soon

LOST THE PLOT: Is the US election shaping up to be a really, really, really ridiculously bad movie. Artwork: Jackson Montage.

One of the most fateful events in the history of the world.

New app to help you remember what bin day it is

Byron Shire Council have a new App to help you remember your bin days. Photo: Warren Lynam / Sunshine Coast Daily

Ever raced down the driveway with a bin only to find you're too late

Byron Shire News Community Calendar

SWITHED ON: Local MP Justine Elliot was in Mullum last week to announce Community Owned Renewable Energy Mullumbimby (COREM) will receive $5,000 in federal funding for the installation of a 10kw solar PV system at the Mullumbimby Showgrounds under the Stronger Communities Programme. Pictured are: Justine Elliot MP, Robert Passey (COREM), Valley Lipcer (Trust member) Ella Goninan(President COREM) and Harry Hackett (Manager Showgrounds).

This week's Byron Shire News Community Calendar

Run helps shine a light on cancer

ABOVE: Byron Lighthouse Run supports Crackin' Cancer and the North Coast Cancer Institute.

This year the Byron Lighthouse Run is turning 10

The Bachelor wash up: bacon, plank offs and that white rose

Richie Strahan, second from left, with bachelorettes Eliza, Faith, Noni and Janey in a scene from episode one of the fourth season of The Bachelor.

RICHIE Strahan meets some beautiful, and colourful, bachelorettes.

The Bachelor: Vinteaea tells why she had to walk out

Vintaea Carlos was one of 22 "bachelorettes" looking for love on the fourth season of The Bachelor.

Queensland beauty leaves Richie at rose ceremony.

Amber Heard claims Johnny Depp is stalling divorce

Amber Heard claims Johnny Depp is delaying their divorce

MasterChef winner cheered on by family in Grafton

BIG CHEER: Carlie Slattery (top right) with her husband Madison and kids Ashton, Eva and baby Milla celebrate Carlie's cousin Elena's win in MasterChef last night.

Carlie gets behind her cousin's MasterChef win

The Bachelor host: this year's season is a cracker

The Bachelor host Osher Gunsberg.

GUNSBERG says tonight will be "the best night of TV of the year".

Kerri-Anne Kennerley to Sonia Kruger: "Stay brave"

She said her television peer should "stay brave"

You can own this Queensland town for just $1

Yelarbon

Unprecedented auction of town's business centre with no reserve

Work starts on $15M Caloundra apartment building

Turning the first sod at the Aqua View Apartments site in Kings Beach are (from left) husband-and-wife developers Alex Yuan and Stella Sun with construction company Tomkins director Mike Tomkins and Councillor Tim Dwyer.

Developers excited about addition to Kings Beach skyline

Plans revealed for 1500-lot 'master-planned community'

Precinct will be bounded by Boundary St and Shoesmith Rd

Ecco Ripley sales run sparks prime release

MOVING IN: Sekisui House has announced the release of more residential blocks at Ecco Ripley.

Sekisui House is preparing to unveil more land at Ecco Ripley

Massive residential 9-storey high-rise hit by delays

An artist’s impression of the eight-storey-high apartment complex that Bernoth Holdings wants to build in South Toowoomba, next to the City Golf Club.

Developer struggles to get approved high-rise development started