Investing in property could be a great way to earn passive income and build wealth. However, it is not advisable to jump into it blindly. Investing in property is a science best learned from a property investment expert. If you want to convert your interest in property to a source of income, the best way is to start with a property investment consultant. A property investment expert has extensive experience in the profession of property investment and is into helping people build their investment portfolio in the property. But people make a few mistakes when they choose a property investment consultant. In this article, we will list the six most common blunders so that you can avoid them.
Choosing old school strategy
Property investment experts can be found a dime a dozen, but what separates a good one from the ordinary ones are the strategies they teach you. Look for a property investment consultant who goes beyond the basic strategy of “proximity to amenities, distance from train stations, infrastructure, vacancy rates etc.”. A good consultant will offer you a data-based, systematic approach to teach you to follow data instead of myths and vague opinions. As in any other field, data is invaluable here, too, for understanding the space and making the correct decisions. So, it will be wise to go with an expert whose approach relies on studying actual data.
Falling for marketing gimmicks
Many property investment consultants promise an iron-clad guarantee of high returns. It would be best if you were wary of these “experts”. There are risks involved in property investment, and a good consultant will explain these to you to learn to make informed decisions. Therefore, it will be prudent to run in the opposite direction from consultants who promise you the moon and more. The same goes for their charges too. They may promote their services or courses as being reasonably priced or heavily discounted but dig in deeper for any hidden costs that may come up as nasty surprises later.
Getting trapped with a cookie-cutter approach
Investors in property have varying needs, expectations and resources. So, a one-size-fits-all strategy will be suboptimal in giving you the desired returns. It would help to steer away from consultants who impart advice within standardised templates alone. You would do well choosing an advisor who equips you with a personalised strategy. You can read up about basic strategies on any good property investment blog. What will truly help you develop a property portfolio with positive cash flow are the personalised tips that a good expert can impart to you.
Ending up with a buyer agent rather than a consultant
Be careful not to choose a buyer agent in the garb of a consultant. You want someone who teaches you “how to fish” rather than “handing the fish” to you. Good property investment specialists will guide you through a solid data-based strategy that will enable you to build a good portfolio on your own. It is also an essential requirement that the consultant is approachable and provides support and tools on an ongoing basis.
Getting stuck with a particular property development company
It is essential to check if the property investment consultant you plan to go with is not affiliated with any particular development company, as this will result in them pushing only that company’s properties. This will severely limit your options and will lead to a weak portfolio. The other negative impact of this will be the negotiation strategies that the consultant will demonstrate for you, as they will be batting for the developer and not for you. An added plus you could look for is someone who gives you options of picking up properties across Australia rather than being constrained by geography. This will provide you with a much wider pool of property to invest in for your portfolio.
Not reading testimonials and reviews.
If you are wondering how you can make sure to avoid the usual pitfalls while choosing a property investment consultant, the best way is to read reviews about them. You can find these on social media, Google and YouTube. You will also want to go through their website to glean more information on their strategy and USPs. If possible, you should also reach out to other customers to gain more insights into the consultant.
Remember, property investment can help you build wealth over time if you learn the correct strategy. So, take time out to research and compare consultants before you choose.