Most Buyers Use Brokers, Says Survey

Posted on 12/02/2019  
Most Buyers Use Brokers, Says Survey

The banking royal commission proves that even within regulated environments lawlessness can be rife, says Property Investment Professionals of Australia (PIPA) chairman Peter Koulizos.

He says the multitude of examples of potentially criminal activity within the financial services sector was a sign of what can happen when money becomes more important than client outcomes.

“If this is what happens in a regulated industry, imagine the situation in the property investment advice sector where spruikers can ruin people’s financial lives without much chance of prosecution because it is an unregulated environment,” Koulizos says.

“The report suggests that many in the financial services sector were motivated by greed rather than acting in their client’s best interests. However, such a blanket statement does a disservice to the majority of honest employees working in the industry.

“Mortgage brokers, for example, create much-needed competition and deserve to be paid for their professional service, so we’re pleased that the Federal Government has questioned the recommendation that commissions be paid by consumers rather than banks – who are the ones who can clearly afford it the most.”

The 2018 PIPA Investor Sentiment Survey found that more than 75% of investors secured their last investment loan through a mortgage broker, up slightly from the year before, and dramatically more than the 2015 number of 65%.

About 86% intend to finance their next investment loan through a broker, according to the survey.

Koulizos says he hopes the report’s release will bring an end to the over-the-top credit restrictions that had been in play for more than three years – and are starting to have a negative impact on the national economy.

“Solid borrowers, who should have no problem securing finance under normal credit conditions, are getting knocked back for silly reasons such as spending $50 on Uber Eats on a Friday night,” he says.

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