{"id":1593,"date":"2022-01-23T06:34:26","date_gmt":"2022-01-23T06:34:26","guid":{"rendered":"https:\/\/royabhishek.in\/urbanbuyer\/watch-out-for-these-signs-youre-dealing-with-a-property-spruiker\/"},"modified":"2022-01-23T06:34:26","modified_gmt":"2022-01-23T06:34:26","slug":"watch-out-for-these-signs-youre-dealing-with-a-property-spruiker","status":"publish","type":"post","link":"https:\/\/royabhishek.in\/urbanbuyer\/watch-out-for-these-signs-youre-dealing-with-a-property-spruiker\/","title":{"rendered":"Watch out for these signs you\u2019re dealing with a property spruiker"},"content":{"rendered":"

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Please use the menu below to navigate to any article section:<\/p>\n<\/div>\n

Now more than ever there is more information about property investment available.<\/strong><\/p>\n

Much of it is online and in many cases, it\u2019s mostly untested. \"Advice\"<\/p>\n

Any Tom, Dick, or Harriet it seems can create an \u201cexpert\u201d persona, perhaps because they\u2019re good with words or have a couple of property wins on the board, probably solely due to a rising market.<\/p>\n

Information is king, but poor information can end up not only making you feel like the court jester, but it can also make you go broke.<\/p>\n

Who\u2019s offering you advice?<\/strong><\/p>\n

As I see it there are three different groups of people you\u2019re likely to come across when you\u2019re looking for your next property investment:<\/p>\n

1. A Salesperson<\/span><\/h2>\n

While many salespeople appear to be working for you, they in fact represent the people who are paying their wages, either the property owner (if they are a\u00a0real estate agent) or a developer.<\/p>\n

Because they work off a stock list you\u2019ll usually find they have a solution for you\u00a0even before they know what your real needs are, so they\u2019re not really giving advice.<\/p>\n

Of course, they\u00a0have their role\u00a0in the property game but at least you know who they\u2019re working for.<\/p>\n

And it\u2019s NOT you!<\/p>\n

Remember\u2026if you\u2019re not paying their fee, you\u2019re likely to become the product.<\/p>\n

2. Advisors<\/span><\/h2>\n

While salespeople are transactional and think of the current \u201csale\u201d or purchase, a professional property advisor will aim to develop a long-term relationship and help their clients understand the next 2 or 3 steps even before taking the first step.<\/p>\n

A good advisor will not have any properties for sale but will have a range of potential options to recommend and will then refer their client to a buyer\u2019s agent who is part of their team to find the best opportunity in the market to suit their client\u2019s budget, plans and risk profile.<\/p>\n

3. A property spruiker<\/span><\/h2>\n

Now, these are the ones to be careful of because they are salespeople who masquerade as advisors.<\/p>\n

\"False<\/h2>\n

Some offer mentoring programs, others invite you to join their \u201cclub\u201d, while others cold call and offer you a home consultation or\u00a0free seminar about investing in property.<\/p>\n

You know\u2026\u201dno obligation, just great information, and education.\u201d<\/p>\n

Sounds good so far.<\/p>\n

What\u00a0could possibly go wrong?<\/p>\n

But of course, their aim is to sell you a new or off-the-plan property from their stock list.<\/p>\n

So, here are some signs that you\u2019re dealing with a property spruiker.<\/strong><\/p>\n

1. They have a one-size-fits-all approach<\/span><\/h2>\n

Just like everyone doesn\u2019t fit the same pair of trousers, one strategy does not fit every investor.\u00a0\"House<\/p>\n

While my strategy is to only buy investment-grade properties<\/a>, there are variables within this depending on the individual investor\u2019s financial position, income, age, goals, cash flow, and hopes \u2014 the list goes on and on.<\/p>\n

A professional property investment adviser<\/a> will create a detailed plan that reflects all the above, which means the strategy is uniquely tailored for each investor.<\/p>\n

A spruiker, on the other hand, will have a one-size-fits-all approach such as everyone should buy new off-the-plan units because of the tax deductions.<\/p>\n

That\u2019s not a strategy. It\u2019s a recipe of disaster, which leads me to my next point\u2026<\/p>\n

2. They don\u2019t talk about the risks<\/span><\/h2>\n

Property spruikers don\u2019t talk about the risks.<\/p>\n

When \u201crecommending\u201d a new apartment, the property spruiker would concentrate on the potential to claim various bits and pieces at tax time.<\/p>\n

\"9337186_l\"They won\u2019t outline the fact that the investor will have to have the cash flow to pay the mortgage from one year to the next before receiving of this supposedly \u201cmoney for nothing\u201d funds.<\/p>\n

They also won\u2019t talk about the risks of buying new units such as the propensity for oversupply because developers tend to get a bit carried away.<\/p>\n

They also won\u2019t talk about the risk of new units not increasing in value at the same pace as superior investments, like well-located established properties, because then you might decide not to buy the stock that they\u2019re spruiking.<\/p>\n

On the other hand, professional property advisers outline the potential risks and rewards to all their clients at the outset, because while their strategies are proven, the world can go topsy-turvy for plenty of reasons we can\u2019t imagine, let alone control.<\/p>\n

3. They talk a lot about investing but don\u2019t do it themselves<\/span><\/h2>\n

Many online experts can talk the talk, but they haven\u2019t really walked the walk.<\/p>\n

Perhaps they have bought a handful of properties and because of some market growth \u2014 that everyone in that location benefitted from \u2014 they start shouting their newfound expertise from the rooftops.<\/p>\n

\"Advisor\"I often say a rising tide lifts all ships, but it\u2019s when the tide recedes that you learn who is still afloat and who is not.<\/p>\n

Professional property investment advisers<\/a> should have substantial experience over a number of market cycles.<\/p>\n

That means they should have invested for at least one or two decades and have solid evidence of their property investment achievements.<\/p>\n

A spruiker will likely use an example from recent times, whereas a professional will be able to show (and not just tell) you about properties that they have invested in personally and professionally over the years.<\/p>\n

Also, a spruiker probably doesn\u2019t follow the non-strategy they\u2019re spruiking, whereas a professional will live and breathe it, heart and soul.<\/p>\n

Here are some more red flags to watch out for:<\/span><\/h2>\n

Beware of someone who:<\/p>\n