The Property Investment Professionals of Australia (PIPA) is warning consumers about the risks of property investment spruikers as interest rates hit record lows.<\/p>\n
PIPA chair Peter Koulizos said a confluence of factors was likely to reignite spruiker activity in property markets in the months ahead, which had the potential to financially devastate the unwary.<\/p>\n
\u201cInterest rates are rock bottom, lending is loosening up, plus first home buyers have been given a helping hand from the government deposit guarantee.<\/p>\n
\u201cWhile all of these factors are muchneeded good news for the property sector generally, they also create the ideal conditions for unscrupulous operators to potentially entrap novice buyers and investors.\u201d<\/p>\n
Mr Koulizos said spruikers were increasingly cunning when it came to convincing buyers about investment \u201copportunities\u201d, including enticing people more easily online.<\/p>\n
\u201cHowever, there are a number of tell-tale signs that have never changed and are usually strong indicators that someone is about to get stung by a property spruiker.<\/p>\n
\u201cIt surprises many people that there is currently no legislation to protect consumers from dodgy operators pretending to be property investment experts.<\/p>\n
\u201cHowever, one of the key ways that you can differentiate a professional from a pretender is whether they are upfront and honest about any commissions they may receive from transaction.\u201d<\/p>\n
Mr Koulizos said because there was no legislation requiring them to do so, spruikers would not reveal this information to their potentially prey.<\/p>\n
\u201cProfessional practitioners on the other hand often don\u2019t receive any commissions because their property
\ninvestment advice is independent or they are happy to disclose it to their clients to ensure complete transparency in the process.<\/p>\n
\u201cUsing pressure tactics to force buyers to sign agreements, including offer discounts for immediacy, are other obvious signposts that you\u2019re able to do business with a spruiker.<\/p>\n
\u201cOther signals include them not following the same investment strategy themselves \u2013 the classic \u2018Do as I say, not as I do\u2019 approach \u2013 as well as having a short-term mindset, such as no aftersales service.\u201d<\/p>\n
PIPA\u2019s six signs you\u2019re about to be stung by a spruiker are:<\/p>\n
1. Not disclosing kickbacks or commissions
\n2. Using pressure tactics
\n3. Offering discounts for signing contracts immediately
\n4. Free seminars that come with hard sells
\n5. Not following the same investment strategy
\n6. Cut and run approach<\/p>\n
PIPA has developed codes of ethics and conduct, which all of its members voluntarily agree to abide with, as well as professional standards of accreditation and education for the property investment industry, including a Qualified Property Investment Adviser accreditation course.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Property Investment Professionals of Australia (PIPA) is warning consumers about the risks of property investment spruikers as interest rates hit record lows. PIPA chair Peter Koulizos said a confluence of factors was likely to reignite spruiker activity in property markets in the months ahead, which had the potential to financially devastate the unwary. \u201cInterest […]<\/p>\n