Property advisers need training
Almost 90 per cent of Australians believe the property investment industry should be regulated and licensed in the same way as financial planners, mortgage brokers, and real estate agents, according to a survey.
The Property Investment Professionals of Australia (PIPA) survey of 1004 respondents found 93 per cent believed a person providing information or advice on investing in property should at the very least have some level of formal property investment education or training.
Another 87 per cent believed property investors could do with more investment education about the risk and potential benefits of investing in property.
The survey also found that 70 per cent of respondents thought now was a good time to invest in property and 72 per cent were not worried about the potential removal of negative gearing. Two per cent thought the currently available negative gearing concessions were the key attraction of real estate investment.
PIPA chair, Ben Kingsley, said: "Most property investors are looking past short-term challenges, remaining focused on the long-term wealth benefits that are available from residential real estate, including the potential for capital growth and rental income. Importantly, most investors are not speculating on quick gains in a low interest rate environment".
"The survey also affirms that a lot of the discussion about negative gearing misses the mark. Most investors understand that negative gearing is only a short-term cash flow position, not a property investment strategy," he said.
"And only a very small minority are attracted to real estate for these tax concessions."
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