Calls for regulation of property advice intensify
In an effort to reduce the amount of spruiker activity in the property market and protect self-managed super fund (SMSF) investors, another company has highlighted the need for the regulation of property advice.
“Much has been written about investing in the property market particularly in relation to the SMSF sector with concern voiced from many quarters about its appropriateness (given the high cost of property and its potential to overweight portfolios) and the lack of regulation surrounding property,” Warren Gibson, head of sales and marketing at investment firm DomaCom said.
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“Investors are warned to beware setting up an SMSF for a single property asset, and the dangers of a lack of liquidity in their portfolio.”
Mr Gibson recommended a number of professionals including financial planners, accountants and mortgage brokers get behind the drive to regulate the industry and recommended investors seek out advisers who are members of PIAA (Property Investment Association of Australia) or PIPA (Property Investment Professionals of Australia).
By doing so, Mr Gibson said the industry would start to “drive out the spruiker element” and ultimately better protect consumers.
