New Property Advisors Course

hi MichaelYardney
yes there are problems with seminars and investing groups but most of the people that perform outside the normal 10% return do not work within these constraints so the more creative pens in this world will not be controlled by these rules because these rules restrict there fluid systems.
With any thing there are shonks and spruikers but some of the people that are making deals that for one I would like to be involved in cann’t be regulated for so.
If you like to stay within the (property investment business)thats all well and good but you will always find that one door closes and another opens.
I like to see all angles of investing it gives me a little edge.
as for a good thing I see regulating as a hump in the road of investing and needs to get over to get to your goal.
we have different views

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Hi Michael

I believe as you know that any education is good. My only problem is that many of the marketing companies already have financial planning licences attached or a real estate licence. We already have more red tape in Australia than anywhere else. Just becuase companies are registered as financial planners does not mean that they are doing the right thing by there clients

Nigel Kibel

http://www.propertyknowhow.com.au

Australian and New Zealand The United States Property Researcher and education
One Day property investment research workshop just $290 Melb 26 November Buying in the United States and New Zealand

I was refering to this Michael..??

THE Property Investment Association of Australia will launch Australia’s first accredited property investment course today as the Federal Government considers calls for stricter controls over the industry.

The course developed by Deakin Prime, Deakin University’s corporate arm, is the first accredited training that comprehensively covers all aspects of the property investment industry. A parliamentary joint committee inquiry into the industry has recommended advisers should have an Australian Financial Services licence.

Association board member Noel Browne said the course would provide accreditation requirements for the licence.

The Federal Government is yet to make a final decision on the inquiry recommendations, but it is widely tipped that some form of regulation controlling investment advice will be implemented.

Mr Browne said the course included five modules to be completed by distance education, which would take about six months.

The accredited course has been aligned with the Financial Services Reform provisions of the Corporations Act and with Australian Securities and Investments Commission training requirements for regulated financial services.

Mr Browne said the course had been developed as a benchmark of knowledge and skills

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Hi Michael and others,

I think the PIAA organisation is a good thing.

The course is certainly a step in the right direction, in that, it attempts, in part, to provide some minimum standard of qualification for those in the industry – ie, of providing property investment advice.

But, it has its flaws.

I heard about this course some time ago through John Hopkins, who I understand was instrumental in developing this course, and has been in the industry for many years.

A brief course outline or syllabus is available on the “Deakin Prime” website. It consists of 5 modules (see below) the total cost is $2365 for non-PIAA members, and takes about 6 months to do by distance education (self-study/self-paced). There are no prerequisites to do the course.

For someone with some prior experience in this area and investments, it would probably seem pretty straightforward, maybe even boring. Could be done much quicker than 6 months too.

I think that having some sort of accreditation or licensing of people providing property investment advice is important. But, if someone with no prior experience in the area, no high school degree, no tertiary degree, no personal property investments (PPOR or investment property) – is able to do the course – in 6 months or maybe 2 months or less if they’re clever, in their spare time at home, and pass the assignments/exams, some of which are done “online” (say with a pass mark of 51%)- how credible are they really going to be? Would you take advice from a young upstart, just because he/she claims to be accredited or licensed by this professional body??? Would these people have some sort of “professional indemnity insurance”? I would still be very cautious dealing with someone with this qualification, just as you would be with, for example, financial advisors.

Just as an example from other professions, Archicentre has architects that do pre-purchase building inspections on properties. To do this an architect must have at least 7 years experience in his/her field. In the health field, there are some Master’s degree programs that require 2-5 years of field experience before you become eligible to do the programme.

Not having any prerequisites is quoted as an “advantage” on Deakin Prime website, but I feel it is the biggest flaw!

Any comments, thoughts?

EDIT: My additional comments to PIAA would be to “raise the bar” or the standard, by being more selective as to who can give this advice – we are dealing with novice investors and their lack of knowledge, lack of experience, hard earned money, large deposits and large borrowings into property. Matching these people with equally inexperienced advisors is a recipe for disaster!!!

QUOTED FROM THE DEAKIN PRIME WEBSITE, http://www.deakinprime.com:

“Module 1: Introduction to Property Investment
Module 1 provides an overview of property investment. This module begins with definitions of advice and discussion of the possible implications of Financial Services Reform, and outlines an approved process for giving property investment advice. The module outlines principles of town planning and land use, discusses architecture and building styles, examines direct and indirect property types, and considers the relationship between economic markets and property markets. The module outlines the principles of property valuation and the factors that should be considered when evaluating a potential investment property, and provides an overview of the main players in the property industry.
Module 2: Ethical Guidelines and Regulatory Requirements

Module 2 focuses on ethics, legislation and regulation. This module begins with a discussion of Codes of Practice, Codes of Ethics and industry ‘norms’. The module also examines legislation relating to consumers and legislation relating to property. External regulators and their roles are outlined. This module also discusses establishing and complying with organisational guidelines. Other important topics in this module are consumer protection, investment literacy, and due diligence.
Module 3: Elements of a Property Investment Strategy

Module 3 provides you with the background to enable you to develop a property investment strategy, including principles of investment finance, how property fits into an investment portfolio, property investment strategies and principles of strategy development. This module also explains financial calculations and analysis of returns. Researching and analysing information about property is also explained. Finally, principles of property management and taxation of property are discussed.
Module 4: Determine Client Requirements and Expectations

Module 4 outlines traditional financial planning processes for determining client requirements and expectations, but it does so with a focus on property investment and the property investment process. The module begins with the client interview and goes on to discuss explaining the property investment process to the client. The module examines how the client’s preferences, priorities and financial situation are determined, how decisions are made about appropriate ownership structures for the client, and how to establish the client’s property investment parameters. The module then outlines formulation of a strategy for a client, presenting recommendations to the client, explaining the principles of ongoing review, and preparing and filing client documentation.
Module 5: Implement and Manage the Property Investment Strategy

Module 5 discusses the process of selecting a property for the client, showing the property to the client, and negotiating the purchase. This module explains contractual purchase and settlement, financing the property, establishing ongoing management, monitoring the performance of the property investment, and managing contingencies such as time without a tenant or a drop in property prices. The roles of associated people such as solicitors, bankers, insurers, conveyancers, accountants, financial planners and financiers are discussed. Finally, this module outlines processes for reviewing a client’s investment strategy.”

Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

Thanks for this info Michael, it’s very helpful!

what I would like to know is that if you pay the $5000 or so to become a founding member of PIAA and also the $2500 to do their accreditation program, would you then become a qualified property advisor and get ASIC off your back!

Seems to me that experience in the real world does not count for much but doing these BS courses does!!!

I just dont understand that how consumers will be protected by taking advice from someone who is “accredited” by the PIAA. I think the real problem is some consumers really need to be protected from themselves no matter how many courses their advisor has done!!!!

Just my thoughts XXXX[biggrin]

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