Sound Property Advice
The right advice can allow you to stop worrying about your money, and start enjoying it.
You may think the best property advice is that which makes you the most money.
Think again. You may get lucky on bad advice but at some point, the luck will run out, putting your financial future into jeopardy. Separate the good from the bad by making sure the advice you’re receiving checks all five of the following boxes.
It’s aligned with your objectives. If your property advisor doesn’t know what your investment goals are, how can you be certain that advice is right for you? If your property advisor doesn’t ask about these goals—such as when you want to retire and how—your plan will not be customized to your distinct needs. A good relationship and easy communication with your property advisor is also essential to ensure your plan is updated with your latest milestones and growth goals in mind.
It sounds reasonable. Free or cheap advice is usually a tell tale sign of bad advice. After all, becoming a financial property investment professional requires school, certification exams and continuing education. Another red flag is when a property advisor promises unrealistic returns. As the old adage goes: If it seems too good to be true, it probably is.
Compensation is transparent. Investment professionals are paid through fees, commissions or both for their services. Any out of pocket fees or charges should always be discussed up front, so you know what you are up for or what its going to cost you without any nasty surprises.
It serves your best interests. Believe it or not, many so called property investment professionals serve themselves or the companies they represent which is why they will usually only offer you 1 or 2 property opportunities which typically don’t serve your best interests but earns them the highest commissions or can even be their own developments. Many property professionals operate with reasonably high standards — and the recommendations they present can be suitable for a customer like you, but not necessarily specific to you. This can be harmful to your portfolio if the property advisor has his, not your, best interests at heart.
It’s easy to understand. Be wary of economic jargon designed to get you to say, “OK, that’s over my head, but I trust you.” Good property investment advice is something you can understand. If you can’t understand it but want to, a good property investment professional will work with you until you do.