The Property Investment Professionals of Australia (PIPA) announced that they are looking forward to working with Scott Morrison to regulate the provision of property investment advice, after it was formalised on Friday that the country’s treasurer is set to become the new Prime Minister.
PIPA noted that it had already raised the matter, alongside their input on the importance of property investment, with Morrison during his tenure as the Federal Treasurer.
While this shows some progress as far as the sector is concerned, PIPA chairman Peter Koulizos said that the property investment profession as a whole hoped that a period of political stability would allow a more significant discussion on the matter.
“Notwithstanding the recent political issues, PIPA is hopeful that clearer heads will soon prevail to underpin our nation’s political and economic stability. Since Mr. Morrison provided commentary about property investment and home ownership last year, the Sydney and Melbourne property markets have softened considerably.”
Given the state of things, Koulizos added: “[The] Labor policies on negative gearing, which will ultimately unravel the wealth creation efforts of millions of Australians, are even more absurd now than they were a year ago.”
The possibility of negative gearing reform has been creating a buzz in the industry recently, as well as a lack of regulation in the provision of property investment advice, which could be putting thousands of prospective property investors at risk.
In fact, around 70% of Australian property investors only own one property, because their goal is to improve their financial situation as well as their lives in the later years.
"Until such a time as the government takes regulation of property investment advice seriously, PIPA will continue to provide the public with warnings about only working with ethical and professional industry practitioners," Koulizos concluded.
