When choosing a property advisor, make sure they can cover the following key factors:
Can the advisor provide you with a list of satisfied clients? Client referrals are a great way to gain reassurance about the skills of an advisor. Membership of a creditable industry body is also important as it ensures practitioners are bound by a strict code of conduct.
Yes, there are risks
Run a mile from spruikers who tell you that property investment comes with an iron-clad guarantee of making money. There are real risks. Your advisor should be able to explain those risks in detail.
Providing a personal plan
Every person has different financial goals, so a cookie-cutter approach to property investment will rarely work. Advisors should create a personal investment plan that addresses crucial issues such as your borrowing capacity, and how much of a financial buffer you will need to minimise risks.
How they make money
Investors are entitled to get clear and transparent information from a potential advisor about their advisory fees and how they are paid.
They’ll help you learn
Attending reputable property investment seminars can teach you a lot in a day or so. Becoming financially literate is important if you want to succeed over the longer term in the property market. Solely relying on your advisor’s views adds risk.
You need a choice of lenders
Seek assurance from your advisor that they can help you best source a tailored mortgage solution that fits your specific needs. Choice is essential.
They’ll target properties based on research
True success hinges on being able to access reputable industry research that identifies sound investment opportunities. Avoid relying on developer-sponsored data.
This property is a winner because…
It pays to be wary of advisers who only recommend properties to clients from one development or developer. A reputable advisor will use research to pinpoint a potential growth suburb or city, rather than just plugging a specific development.
This article was originally written for the June 2015 edition of Peninsula Living magazine.