The PIAA 5 Star Rating System

PIAA investors in the property boom of 2002 found that a significant number of the off-the-plan investments they bought into etiher weren't completed; their deposit funds languishing in a vendor's trust account for up to 3 years, or they were modified by less than 5% and this significantly changed the appeal of the dwelling. It was very difficult to assess from the outside what was going on and how to identify good investment that would reward the risks of investing.

As a result PIAA developed its 5 Star Rating System. An independent due diligence audit of the 200 categories of information provided by the developer. The independence of PIAA let them have access to the feasibility studies, commercial in confidence material to assess whether there was enough profit that the development would be completed. It also let them build a profile of the developer, architect and builder to appreciate their past work and its success for investors. PIAA also looked at many of the build and construction issues that investors can't usually access.

From this came the rating system, one star for the basic information, and up to four for the majority of the information with five stars reserved for those developers that rated their developments for five years. PIAA also create an Advantage Statement, a factual review of the potential capital growth and rental growth drivers for the area. Expert references are used adn reported for those of you who wish to investigate further.

PIAA has removed its Rated Development display from its web site as some users were confused and thought we were selling property rather than reporting on it. Advantage Statements will still be published and are current for the timing of the report.

If you have any feedback about this please contact us at admin@piaa.asn.au.