It seems we have become a nation of “experts.”
Just check your inbox or turn on the television and there they are.
- Experts on politics who have never run a business, let alone a country.
- Experts on football, even though they couldn’t run from one side of the field to the other.
- Experts on celebrity who can’t sing or dance themselves and…
- The new property cycle seems to have brought a whole new generation of property experts
If you’re like most property investors you’re inundated with the opinions of lots of different property “experts.”
In fact I’ve joking said there are 25 million property experts in Australia:-)
So who do you listen to? How do you choose?
Today I’ll give you my thoughts.
Yes, we are surrounded by so-called experts—people with opinions, but very little expertise.
And you know what they say about opinions?
They are like belly buttons, everyone has one, and mostly they are useless.
Here is the definition of an expert according to wikipedia.com:
“Someone widely recognised as a reliable source of technique or skill whose faculty for judging or deciding rightly, justly, or wisely is accorded authority and status by their peers or the public in a specific well-distinguished domain.
An expert, more generally, is a person with extensive knowledge or ability based on research, experience, or occupation and in a particular area of study.”
I’m going to share some of my thoughts on how to find a property expert to help you in a moment, but first I’d like to explain why I wrote this article.
A while ago I received an invitation in the mail to book into a webinar and learn from a group of experts
It said that when I attend the webinar I would be shown “How to make an Extra $100,000 in 36 Days.”
Sounds good so far…
So who’s going to teach me?
As I read on the speakers have proven outcomes by generating:
- Over $1 million in 7 days
- $1.4 million in 54 minutes
- And a massive $23.8 million in less than 24 hours.
Now I have no reason to disbelieve these claims (why would I?), but…
It’s just like when I received an email talking about land banking
Now this is a strategy I have been using personally and recommending to clients for years, but what I read was a (please excuse the expression) bastardised version of what successful investors do.
To me a safe land banking strategy is to buy the worst house in a good street and hold onto it for a couple of years until you can afford to do a development.
Instead what I was reading was the concept of buying an option on paddocks which are not zoned residential, and may never be, in rural Australia.
I remember reading of a swindle where a group was reportedly selling land bank options around Shepparton and that particular development has reportedly gone into liquidation, with about two-thirds of the $4.8 million in “option” fees being unaccounted for.
A year later I read that that group who suggested this more recent land banking scheme was taken to court for allegedly squandering all the investors money!
And now there’s a new group of “advisors” and buyers agents out there that have only been in the market a year or two
“Experience is the best teacher, but the tuition is high.” This is an old Norwegian proverb, but it certainly applies to the experience of finding and negotiating for investment grade properties.
Have you been getting the same emails I have?
There’s an online school that will teach you to be a buyers’ agent, and you can do it part time, using virtual assistance while keeping your day job!
And these people are out there touting for your business – I kid you not!
Of course there are many professional buyers agents and property strategist out there. Once you have actually done the hard yards and have years of experience – And they offer a great service.
However there is currently a new school of enthusiastic amateurs acting as “buyer’s agents” hoping to help home buyers and investors.
Some have been in the property game for a few months, others for a couple of years, and while I’m sure they have the best intentions – many just don’t have the experience or perspective or negotiation skills required to represent their clients properly.
Of course I realise that we all have to start somewhere, but can you really take a risk with your investments?
My team at Metropole come across them all the time – on the ground in the property market – and while we sometimes snigger at the rookie mistakes they make, we really feel sorry for their clients who are not being represented professionally.
Few buyers’ agents fresh out of school have the level of negotiation-savvy found in a seasoned buyers’ agent. And this can cost their clients tens of thousands of dollars.
Others lack the resources or connections to truly “level the playing field” for their clients.
What this means is that by hiring a cheap buyers’ agent the investor or homebuyer actually loses out – if you think about it the cheapest buyers’ agent is the one who makes you the most money in the long term by helping you purchase the right property at the right price with the least stress.
So here’s my advice on who to listen to in order to create your own financial freedom…
1. Only take advice from those who have done it successfully and significantly and kept their wealth for a long period of time
In other words find practitioners not just teachers.
There is a long, long list of people who have conducted property seminars over the past 20 years giving what sounded like good advice at the time, but who are no longer around.
Sure, there are those who can teach even if they haven’t done it, but why take the risk.
2. Don’t follow anyone blindly; instead be a student of property advice
Listen to and read the advice of several experts with conflicting opinions.
Consider their viewpoints – check out their results.
Different property strategies will suit different people depending on their income, their stage in life and their risk tolerance.
Research, learn and then do what suits you.
3. If it sounds too good to be true, it probably is!
I know some people really, really want to get into property and many want to get started in property renovations and development so they are enticed by promises that you can come to our weekend seminar and you’ll learn all you need to give up your day job.
Or you can bypass the banks and buy property with no money. O.K. – you may need a dollar. (The spruiker who was teaching this has now been sent bankrupt by his ASIC fines)
Others are still suggesting you can buy good property on lay-by.
Now I accept that a really small percentage of people who try this will succeed, but probably 99% won’t.
I know – I see them and get emails from them every day.
Why do you need an expert’s advice?
Simply, it’s just too hard to try and do it any other way.
You see… most property investors don’t achieve financial independence, or they take much too long to get there, because over the first decade of their investing career they have to sort out what works and what doesn’t.
Of course many never survive this stage.
And the small percentage that does then have to make up for the lost time and lost money.
It’s just too hard to do it on your own, or by trial and error – there’s a huge learning fee involved – of time, money, effort and heartache.
On the other hand following the teachings and proven systems of those who’ve already achieved what you want to achieve and who’ve retained their wealth through a number of cycles, while not guaranteeing your success, makes it much, much more likely.
Now is the time to take action and set yourself for the opportunities that will present themselves as the market moves on in 2021
If you’re wondering what’s ahead for property you are not alone.
You can trust the team at Metropole to provide you with direction, guidance and results.
In “interesting” times like we are currently experiencing you need an advisor who takes a holistic approach to your wealth creation and that’s what you exactly what you get from the multi award winning team at Metropole.
If you’re looking at buying your next home or investment property here’s 4 ways we can help you:
- Strategic property advice. – Allow us to build a Strategic Property Plan for you and your family. Planning is bringing the future into the present so you can do something about it now! This will give you direction, results and more certainty. Click here to learn more
- Buyer’s agency – As Australia’s most trusted buyers’ agents we’ve been involved in over $3.5 Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney and Brisbane bring you years of experience and perspective – that’s something money just can’t buy. We’ll help you find your next home or an investment grade property. Click here to learn how we can help you.
- Wealth Advisory – We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.
- Property Management – Our stress free property management services help you maximise your property returns. Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years and our properties lease 10 days faster than the market average.
Subscribe & don’t miss a single episode of Michael Yardney’s podcast
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
Need help listening to Michael Yardney’s podcast from your phone or tablet?
We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.
Prefer to subscribe via email?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.