‘Cockroaches’: Calls grow for scrutiny of buyers' agents as banks step back from trust lending
A hot property market has fuelled a boom in buyers agents, but critics say weak, outdated regulation has let bad actors thrive as reckless advice spreads online.
The peak body for buyers' agents has urged legislators to bring regulation to bear on the industry as shoddy online advice puts investors at significant risk, and sends alarm bells ringing at major banks.
Melinda Jennison, the president of the Real Estate Buyers Agents Association of Australia (REBAA), said Australia’s regulators should be worried as an enormous boom in unlicensed advice on social media relating to property unfolds, with investors being encouraged to make purchases that are not appropriate for their circumstances.
"A lot of that advice suggests that regardless of who you are – what your financial situation, risk appetite, goals or investment horizon are – the right strategy is purchasing within trust structures to fast track your portfolio, and buy ten properties in ten years,” Jennison told Capital Brief.
“Buyer's agents are providing a blueprint for how to do that, and it’s dangerous.”
