Anyone, regardless of their experience and qualifications, can give you advice on how to spend a considerable amount of money to buy an investment property - and you could be left totally unprotected.
That’s the warning from Margaret Lomas, who heads up the Property Investment Professionals of Australia.
These people can also make a commission from the sale and charge you for their advice, but there is currently no legislation that offers any protection against shonky advisors.
By contrast, the finance investment industry is arguably over regulated.
“If you have $20,000 cash to invest, your financial planner will be regulated to the wall in regards to how they can advise you on its investment, but mention you are looking to buy $500,000 worth of property and every shonky man and his dog will come out of the woodwork to help you part with it – and you will be left stranded when it falls in a heap,’’ Ms Lomas said

Real estate agents are very wary about giving any assurances about property investment purchases, and rightly so because for the best part they are not qualified to give investment advice.
Having said that, the real estate industry and its licenced operators are heavily regulated and carry professional indemnity insurance, which offers some protection to consumers.
The real problem exists with property investment advisors who sit between the finance and real estate industries, but the federal government seems to be blind to the risk of consumer exposure and financial ruin due to a lack of regulation.
“The fact remains as a property investor, you currently have no right to be protected in your dealings,’’ Ms Lomas said.
‘‘If you receive bad advice which you act upon, you have no recourse. Further, your advisers are unlikely to even have professional indemnity insurance as the underwriters will not insure unregulated professionals.