5 reasons you should seek professional advice
Smart property investment decisions don’t just happen. Just like any other major purchases you make, the best investment decisions often arise from taking the time to research properly and seeking the advice of professionals.
Blogger: Brodie Brown, senior property investment adviser, Investment Property Help
Remember the last time you had an incredible shopping experience?
When an assistant went the extra mile, and knew everything about their product or service. They took time to show you the options, and shared all the information needed to make a smart decision. Finally, when you knew you were making the best choice, they helped you complete the purchase.
In essence, this is how a property adviser can help you invest. Next to your own home, your investment property will probably be the largest purchase you’ll ever make. This alone justifies seeking professional advice before investing. If that isn’t enough to convince you to consult an expert, here are five more reasons why you absolutely should.
1. You can learn from the mistakes of others
The smartest investors make their money by minimising losses, as much as maximising their gains. Although investing isn’t a perfect science, a property adviser who knows what they’re doing will have seen it all before.
Their expert advice will ensure you’ve taken everything possible into consideration to reduce risk and increase upside. For example, one common mistake investors can make is purchasing in an area you personally would love to live in.
You must always remember it’s not about what you want – it’s about what the tenant might want. An adviser will help you differentiate between the two.
2. Tap into their market knowledge
How much time do you really have to research an investment property? Be honest with yourself. Property advisers live and breathe this stuff, the best having accumulated experience over many years with access to even more experts in their team and industry.
Between your other commitments, you might squeeze in an hour or two each week at most. At that rate you’ll take years to build up the knowledge and confidence required to secure a winning opportunity. All the while the market will be moving away from you, becoming less affordable each day.
3. They know what rents
Owning a property that isn’t rented out is the most stressful part of investing. This happens often, but the risk can be significantly reduced by investing in a property that suits a particular market segment and has every feature that segment might need.
A good property adviser will ensure that there is an abundance of potential tenants within the market you invest. If you get the previous two points right, then you can usually adjust the rental price by only a slight amount and generate huge interest and resulting applications, ensuring the property is rented – fast.
4. It’s who you know and what you know
Like any, the property industry has its own circles and groups. Most agents, brokers, builders and developers have a network they rely on for the selling process.
When you work with a well-connected property adviser, you’ll be in ‘the club’ and have access to the properties that the general public don’t see, at prices lower than what they pay. In the off-plan market, for example, most developers sell a large percentage of the building off-market or pre-release.
Let a property adviser help you and they’ll get you into one of these exclusive properties, with an ideal floorplan, usually at a decent discount.
5. They get paid to save you money
The job of a real estate agent is to get the seller the highest price. The job of a property adviser is to get the investor the lowest price. In effect, they have almost opposite roles in the industry – use that to your advantage and save some money.
A common misconception is that investors will have to pay the adviser, but that’s not always the case. Advisers with more influence will have the seller pay them, saving the investor even more.
It’s good practise to ask the adviser how they earn a living upfront, to avoid being lumped with an ugly fee at the end of the transaction. You’ll know you’ve found the right adviser when they find you a superb investment at a lower price than you alone could find, take care of every detail of the transaction and don’t charge a fee.