Ben Kingsley, the Chairman of Industry body, PIPA, the Property Investment Professionals of Australia, wrote an article with his advice to Australian Property Investors.
In it he started with:
‘A small investment in qualified advice could be the best investment you make when it comes to your property portfolio.’
To summarise the key points of his article:
- Property investment is not easy – there are a number of factors to consider and it requires specialist skills and knowledge
- Most Australian Property Investors don’t get past buying just one property
- Too many people decide to invest in property without getting appropriate advice from an industry professional
- Many take advice from peers or neighbours who aren’t properly qualified
- If you want investment success you should get advice from the beginning, before your first property purchase
- Selecting the right property is the, ‘make or break’ of wealth base planning
- The first professional to talk to is a qualified property investment adviser (QPIA)
- They have a formal education in the provision of advice, and their focus is to provide you with an investment plan
- They will assess your financial situation, your goals, your risk profile and comfort
- They will develop an investment strategy that suits you, with your goals and objectives in mind
- Property investment involves other professionals too, such as Mortgage brokers, accountants, buyers agents, conveyancers and property managers – and your QPIA can give you the right advice and often contacts
The reality is that property is a high value transaction – so if you are spending hundreds of thousands of dollars, then professional advice from a QPIA is a great investment.
The difference to you could be an improved investment return of hundreds of thousands over a ten or twenty year period
Smart investors are honest about what they know and what they don’t – and want to get the best possible returns – so will always use an expert in the field. That’s because successful investment requires a, ‘strategic and deliberate’ approach, guided by an expert. So, qualified advice could well be the best investment you make in your long term financial future.
With the absence of regulation in the property investment space, the prospects of trust and honesty aren’t always guaranteed
So it is a highly risky venture to try to do it without the right advice.
PIPA advocates the regulation of the industry in a similar way to how investing in shares or any other financial product is handled. Until the industry is further regulated, PIPA works to help and protect consumers through the process, and provide assurance through the qualification of recognised, formally trained professionals in the field. Members have to follow a strict code of conduct to be accepted, and listed as PIPA members.
Not using a PIPA member risks you being over-charged – such as through hidden fees, or fees you are not aware of such as kickbacks from the builder or developer. We need to stress this, you’re often not aware you are paying a fee, something which can initially sound appealing. But trust us, you ARE paying for this unqualified “service”. No one works for free.
It’s critical to understand that when combining a largely unregulated industry with high value properties, it is an industry that attracts many less scrupulous operators, who are more interested in what they make out of it than the returns for you.
Cold calling strategies, offering a ‘free’ service is a classic example of where salespeople are being paid commissions by the builder or developer
These commissions could be as high as 10%, so you can easily see where the incentive can be for them to be more concerned with making the sale than your prospects of a good investment and strong returns for you.
PIPA members provide full disclosure on fees, as this is so important. This transparency allows consumers to make better informed decisions. Only those who are professional and ethical in their approach are members of PIPA, and must disclose in full any monies they receive.
PIPA’S memberships also incorporate all types of professionals in the property investment industry – from QPIA’s, to Mortgage Brokers, Accountants, Buyers Agents, Property Marketers, Builders, developers and lawyers – providing excellent assurance for investors that these professionals are properly educated, regulated, and transparent in their dealings.
Adviseable is of course a member of PIPA – it’s Buyers Agent team fully qualified, licenced, experienced – and very happy to say – award winning!
If you are ready to get professional and qualified advice, then please do give us a call.