More and more investors are joining the call for the property investment industry to be regulated.
The 2016 PIPA Investor Sentiment Survey found that the vast majority of investors believe the provision of property investment advice should be underpinned by relevant legislation.
Although investors are becoming more sophisticated â€“ with 31 per cent of survey respondents having a set strategy for investing â€“ 87 per cent consider that more investment education about the risks and potential benefits of investing in property is needed.
Even higher numbers, at 89 per cent, believe that the property investment industry should be regulated and licensed in the same way as many other professionals.
Even higher numbers believe that property advisers should have some formal vocational training, and that the property investment industry should be regulated and licensed in the same way as financial planners and mortgage brokers
The survey results show that investors see property investment as an industry that should be subject to professional standards. Almost all investors continue to believe that more education is needed and that any provider of property investment advice should have formal training and be regulated/licensed.
About 65 per cent of investors are aware of PIPA, and almost all of these people know that its members abide by a strict professional code of conduct.
The survey results also found that
The survey also found that property investors do a lot of planning and researching before they buy. More than 19 per cent have a detailed plan and another 31 per cent have a set strategy for investing.
More than half have, in the past, used the services of: a mortgage broker; an accountant; a lawyer/conveyancer; and a property manager. Some 44 per cent have used the services of a property investment adviser, while 19 per cent have worked with a property investment coach.
The investors derive their information from a huge variety of sources: aside from professional advisers, the most important sources include research/data providers, property/investment magazines and internet searches.
6 November 2016
Nicola McDougall, Noodle Communiations