By Grant Foley, Buyers Agent, Grant Foley Property
With the exception of Melbourne, dwelling values in every capital city increased last year – a result that might surprise some naysayers. The strong end of last year has set the tone for an even more robust 2021, with demand already vigorous in many parts of the country courtesy of reduced stock supplies and record low interest rates. These rising market conditions still provide plenty of opportunity to homebuyers and investors, but in times like these, something less desirable also often rears its head. I’m talking about spruikers or fly-by-night “advisers” whose motivation is not so much to help people invest in property strategically, but to make money from their inexperience while the going is good. Property Investment Advice – Caveat Emptor!
It’s expected that property investors will make a return to property markets after a number of years on the sidelines this year. According to the latest Australian Bureau of Statistics Lending Indicators, new investor loan commitments increased six per cent in November, with a rise of 3.9 per cent also recorded over the year. Historically, there has been a correlation between a rise in property investment activity in the market with an increase in property investment “advisers”. Unfortunately, not all property investment professionals are equal, and, surprisingly, the property investment advice industry is also unregulated. Alarmingly, this means that, technically speaking, anyone can provide property investment advice – even if they have no experience or qualifications to do so! Often, many people who pretend to be “advisers” are actually working for a third party, such as a developer, to promote a particular type of property and for which they receive huge commissions to do so. Clearly, that means they are not providing true independent advice, which is why I said caveat emptor or buyer beware! What are Qualified Property Investment Advisers? Because the provision of property investment advice remains unregulated, an industry body was established more than a decade ago to help protect consumers. The Property Investment Professionals of Australia (PIPA) was formed by industry practitioners with the objective of representing the sector and raising the professional standards of all operators servicing consumers in property investment. By adhering to a code of conduct, and obtaining professional standards of accreditation through education, PIPA members demonstrate their commitment to excellence in the provision of property investment advice. PIPA has long lobbied for regulation of the property investment advisory industry and will never give up its fight to ensure consumers are protected from property investment spruikers.
Likewise, in the absence of a formal qualification requirement, PIPA developed and oversees the Qualified Property Investment Adviser® (QPIA) accreditation for professionals providing advice in the property investment space. I am both a member of PIPA and achieved my QPIA a number of years ago, in addition to my buyers’ agent license and significant property investment experience across the nation. What are the benefits of using a QPIA?
QPIA’s are property investment professionals who have completed the required education to ensure they have providing first-class client outcomes. The QPIA course is the industry benchmark of knowledge and skills for individual investors and professionals in industries involved with property investment. The course involves study in specialist modules including elements of property, and property investment advising, finance and structuring, as well as the buying and selling process. After successfully completing the course, QPIAs are qualified to provide genuine property investment advice, which means consumers can work with them with trust and confidence. We also understand how to work with property buyers and investors to ensure their personal circumstances are being taken into consideration, plus they are aware of both the risks and benefits of property investment. This means that a qualified property investment professional will create a tailored property investment plan for their clients that suits their personal goals as well as their risk profiles.
Plus, QPIAs will over-see the implementation of your property plan by working with other trusted advisors such as buyers’ agents, mortgage brokers, accountants, and property managers.
Faux advisers, on the other hand, adopt a cookie-cutter or one-size-fits-all approach because they are not interested in the outcomes of their so-called “recommendations”. That is why it’s vital that you do your homework before agreeing to work with anyone purporting to be a property investment adviser – because they very well may not be one at all.
Grant Foley is a Property Investor, Qualified Property Investment Advisor® & Licenced Buyers Agent. Enquiries: firstname.lastname@example.org
© Grant Foley Property 2021
The content of this article is of a general nature. Investors should seek their own independent legal & financial advice