The push to regulate property advice
For too long we have been hearing about unlicenced people providing advice to investors, but sometimes people need to learn the hard way.
Blogger: Josh Atherton, Portfolio Property Investments
To continue reading the rest of this article, please log in.
Create free account to get unlimited news articles and more!
Just today a property investor contacted me, she wished to discuss our buyers agency service arm of our business. The conversation started with this statement, “I just want someone to tell me where to buy, can you do that?". I had not met this investor before, nor had they had anything to do with our financial planning services. So, initially I went to take the client back a few steps and obtain some more information prior to only telling her, unfortunately I cannot tell you exactly where to buy with a simple phone call. If you would like me personal opinion about where I am buying I can give you that, however none of us have any idea at this point if what I buy or where I buy personally is at all appropriate for you or your strategy.
The client pushed even further and mentioned some competitors who have told her where to buy and was frustrated I too could not give her my opinion. Chances are she was going to make s very large financial decision based on the opinion of what I would say, whoever is the best salesman she talks too.
You see, I rate my sales skills, but there are certainly better salespeople in the industry. I guess this particular client will no doubt follow the person that instils the most confidence into her situation.
For too long we have been hearing about un licenced people providing advice to investors, I get that many people put on the shiny suit and hit the road to convince people that the opportunities they present are the best the market has seen for years, but lets be honest, this is the minority of property buyers that accumulate property this way. Whilst I’m not for it, you have to take a moment to understand why sellers would choose this path to make commissions, there are far too many investors that will trust anyone and make financial decisions from a vulnerable and un-educated position.
I would like to see consumers smarten up a bit, which could change a few aspects of the industry, surely. Financial advice has been strictly governed for years however we all too often see businesses take advantage of consumers in many ways including unrequired insurances, excessive hidden trails on products, SMSF’s when they are not suitable for the client, the list goes on. We put too much trust in other people too easily when it comes to investing. Financial literacy is not taught in our educational system and we often rely on anyone that can make us feel good when investing. Thus, it is often the greatest salesman that wins, not the greatest product or service.
The industry plays on fear when people are investing, it's human nature. When were fighting for our financial future we don’t want to miss out. Our emotions are running wild at this point.
If anyone wants to take investment advice from a real estate agent, I say go for it. It would appear that there might only be one way for that person to become smart at their investing, and that’s by learning the hard way. If a silly person is going to ask for advice from someone who isn’t even clearly qualified to give it, they’re going to get the answer they deserve, full of nonsense.
About Josh Atherton
Josh’s passion to see people achieve more in life led him to found PPI from a background of avid property investing, developing, construction and real estate experience. Josh is continually sought after to provide commentary and opinions in some of the countries leading magazines and property forums. Through innovative property investing methods Josh provides platforms for PPI’s clients to build property portfolios outside of the norm.
Comments powered by CComment