When planning to invest in property, people tend to think about “where should I buy, what should I buy, how much can I afford?”
But often they don’t think about “who should I ask for advice?”
Since investing in property is a significant financial and personal decision, it’s really important to make wise decisions, and it’s really important to get good advice early in the piece because getting it wrong can result in significant financial loss, emotional stress, and a huge lost opportunity.
And if you’re in the middle of your property investment journey, it’s still critical to ask for advice to make sure you’re heading in the right direction.
So, who do you ask for advice?
And with so many mixed messages and vested interests out there, who can you really trust?
Well, that’s the topic I discuss today with Brett Warren, National Director of Metropole Properties and I hope at the end of today’s show, you’ll have more clarity in your options and who you can ask for advice, and what you can and can’t expect from your advisors.
And of course, I will also share my regular mindset message with you.
Who Do You Ask for Property Advice?
Our property markets are booming at present but we know that now all markets will perform the same over the long term.
So as a property investor who do you turn to when looking for advice?
A better question may be - with so many mixed messages and vested interests, who can you really trust?
Who investors could turn to for property advice:
- No One— many beginning investors make this mistake. They think they already understand the market.
- Friends or family— People do this for understandable reasons, but unless you have millionaires in your family, it’s probably a bad idea.
- A real estate agent— It’s important to remember, agents work for the vendor selling the property, not you.
- A mortgage broker— Brokers are helpful in the finance areas, but not experts on investment-grade properties
- An accountant— You should talk to an accountant! But about things like tax matters and structuring, not the property market.
- Financial planners— Financial planners sell financial products, but most are not able to advise on real estate.
- A property marketer— These are salespeople who really selling “product” for a property developer who is most likely going to make the biggest profit out of the deal.
- Investment seminars and workshops— Is the person leading the seminars an actual expert who made their money in the market? Or do they only make money by teaching others? It’s an important question.
- A property mentor —It’s important to have mentors. Just be careful who you choose and ensure they have achieved the results you want to achieve.
- A buyer’s agent— These can be a great help in selecting the right property, but they don’t devise a plan that takes into account your family's future needs and your risk profile.
- A property strategist – Someone who can help you grow, protect and pass on your wealth using property as a vehicle.
What a good property strategist can do for you:
- Get to know their clients’ hopes and fears to help them achieve their long-term financial goals.
- Help remove his client’s anxiety by simplifying the complex.
- Develop a long-term relationship with the client and help them see several steps ahead.
- Recommend proven strategies that have always worked.
- Offer a list of potential property options and refer their clients to a buyer’s agent who is part of their team.
- Help their clients select an investment property that is the highest and best use of their funds.
- Help clients avoid big mistakes.
- Provide perspective, insights, and often optimism.
- They will also advise their clients to invest their money the way they do themselves.
- Regularly and objectively assess the performance of their property portfolio
Some things a property advisor can’t really do:
- Predict the future.
- Find the next hot spot for you.
- Pick the best time to purchase an investment property.
- Help you get rich quickly or achieve extraordinarily high returns without taking on extra risks.
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Some of our favourite quotes from the show:
“Many beginning investors think they understand real estate because they’ve lived in a house, they’ve rented a house, they’ve rented an apartment.” – Michael Yardney
“In my mind, it is critical to have a trusted advisor when making property decisions. It’s just too hard to do it on your own.” – Michael Yardney
“A property advisor should actually be part of your long-term journey. It’s a long-term relationship.” –Michael Yardney
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