Oct 29, 2018
Who do you ask for property advice?
With so many mixed messages and
vested interests, who can you really trust?
Our annual Property Investor
Consumer Sentiment Survey revealed the many and varied sources that
property investors consult for advice.
But since most property
investors fail to achieve the financial freedom they deserve, and
with less than 8% ever owning more than 2 properties, a better
question to ask would be…who should you be asking for
This week’s podcast is designed
to help you cut through the clutter:
Let’s start with who could you ask for property
Here are the people you could
- Friends or family
real estate agent
- Financial planners
- Investment seminars and workshops
When you look at this list you
can now see why you need… an independent, unbiased property adviser
In my mind, it is critical to
have a trusted advisor when making property investment decisions.
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
Here’s a list of some of the things a good property
advisor can (should) do:
- A good advisor will first start
by getting to know their clients’ hopes
and fears and then be
future-focused to help them achieve their long-term financial
- With so many mixed messages
about property investing out there (many coming from parties with
vested interests), a good property advisor will help
remove his client’s anxiety by simplifying the complex.
- While most buyers’ agents or
property sales people are transactional and think of the current
“sale” or purchase, a professional property advisor will aim
to develop a long-term relationship
and help their clients understand
the next two or three steps even before taking the first
- Many clients come to a real
estate advisor looking for the next big thing — some are looking
for a shortcut, or the next hotspot, or a way to get rich
Instead, a qualified property strategist
will stop their clients speculating by
recommending proven strategies that have always worked.
- A good independent advisor
will not have any properties for sale but
will have a list of potential
options and refer their clients to a buyer’s agent who is part of
their team to find the best opportunity in the market to suit their
client’s budget, plans and risk profile.
- A strategic advisor will
never put any pressure on their client
to make an investment decision, but
their knowledge, research and experience will help their clients
select an investment property that is the highest and best use of
their funds, and one that will work hard for them over the long
- A wise property strategist
will help their clients avoid the big
mistakes made by the
average investor and will earn their fees simply by helping their
clients avoid the devastating errors made by many investors such as
those who lost significant amounts of money by investing in mining
towns, regional locations, house and land packages or off-the-plan
- By being a student of history,
a good strategist will be able to provide
perspective, insights and often optimism
at a time when the media is being
pessimistic, and vice versa.
- They will also advise their
clients to invest their money the way they do themselves —
they must be experienced investors —
not enthusiastic amateurs.
- A good strategist will
regularly meet with their clients to objectively assess the performance of their
property portfolio and ensure they are heading in the right
As you can see — it takes years
of learning, experience and the perspective that only comes from
investing through a number of property cycles to become a great
Let’s look at some things a property advisor can’t
- Even a good advisor
cannot predict the future. They won’t be able to tell you how the market
will perform, what will happen to interest rates or what capital
growth rate a particular property will achieve.
- They won’t be able to
find the next hot spot for you, yet many so-called advisors suggest they can.
In essence they give their clients what they are requesting, rather
than what they need — sound, solid advice.
- Even the most qualified
advisor won’t be able to pick the best time
to purchase an investment
property other than to remind you that the best time to invest was
20 years ago, and the second best time is today.
- A good advisor
won’t be able to help you get rich quickly
or achieve extraordinarily high
returns without taking on extra risks.
What is the difference between a property strategist and
a buyer’s agent?
- Buyers agents are order
takers — they will fill an
order given to them to find you a property and will be biased
towards the areas they have expertise in, but this may not be in
your best interests.
a property strategist has the expertise to design that “order” to
suit your specific needs. They will be your long-term wealth
creation partner, annually reviewing the performance of your
property portfolio, and will provide recommendations on any
opportunities as well as when it’s best for you to do
Here are some signs that you’re dealing with a property
- They have a one-size fits all
- They don’t talk about the
- They talk a lot about investing
but don’t do it themselves
Beware of someone
- Has a
stock list of properties to sell you.
- Offers you a property rather than an investment
strategy. Red Flags
“advice” before they’ve found out all about you, your needs, your
plans, your risk profile.
- Offers a “one stop shop.” Particularly if they
want you to use their lawyers, rather than your own who should vet
any contract carefully.
you that negative gearing is a sound property strategy (because
it’s not an investment strategy at all — it’s a consequence of how
you finance your property.)
- Suggests property values always keep
- Offers a rental guarantee to sweeten the
- Pressures you into saying yes quickly to
whatever it is they’re offering, whether it’s deciding to attend a
seminar, signing up with their company to gain advice and any other
- Downplays the risks and related costs that are
involved in property investing, and/or has an inability to
substantiate their claims of profit and success. If they’ve helped
so many people achieve success, where is the proof of
Links and Resources:
Metropole Property Strategists
Rich Habits Poor
Michael Yardney’s Mentorship
Michael Yardney's Property Renovations and
Some of our favourite quotes from the
“While they may know their local
neighborhood, that’s very different to understanding property
markets and property investment.” – Michael Yardney
“Some mentors are
thinly-disguised salespeople.” – Michael Yardney
“Put simply, if the advice is
free, you’re the product.” – Michael Yardney
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