Unfortunately, there are many common traps & mistakes that are made when investing in residential property, usually by unethical companies misleading people for their benefit. We are going to list a few below so that you are aware of them and we want you to feel that “Investing with Integrity” feeling when you purchase your next investment property. Whether it’s with us or another company we just want you to feel confident and secure that you have picked the right company and product.
Always remember to ask the question “Why” with anything that you feel uncomfortable with and make sure you get a satisfactory answer, or don’t commit with that company. Remember, it’s your money, your future and your choice, so don’t be pressured into any investment property and never buy anything on the day, go away and think about it.
We listen to so many kinds of statements and comments on a daily basis from people around Australia who are looking to invest in residential property and all we can say is “Wow” , have a look at what some companies are saying to their prospective clients.
If It Sounds Too Good To Be True, Guess What, It Probably Is!
You Can Invest In Property For Only $50 Or $60 Per Week
In our experience if people are using this kind of bait advertising to catch your attention and suck you in then look out because something else might be on the agenda! Successful property investing covers so many different types of financial contributions, circumstances and individual situations so making comments like this without first knowing all the facts about a client in our opinion could be misleading and provide false hope or incorrect information to a client.
Queensland Or Melbourne Or Sydney Is The Only And/Or Best Place To Invest In Australia!
Based on what? This one is a beauty and we hear it all the time. In fact, it’s not necessarily true that a certain State is the best answer for you, your residential investment property selection should be carefully considered before making any decisions and be based on a lot more facts than just a great State. Ask the sales person about the capital growth of all major cities over the last 20 years and the answer will surprise you.
NRAS Stock Is The Best Property Investment Around At The Moment!
Another great misleading statement! There are a lot of companies currently pushing/flogging NRAS product heavily because as the industry calls it “it’s an easy sell to investors”. It’s based generally on just the tax benefits alone and these companies are advising people of all the positives and forgetting to advise the clients on the possible negatives involved with the NRAS product. Please do your home work properly and get all the facts before investing in an NRAS property and more importantly, make sure it’s right for you and your circumstances.
A Second Hand Property Is Just As Good A Brand New One!
Another blanket statement made which could also be untrue or misleading, depending on your personal circumstances and other factors involved in making your investment property decision. There are advantages & disadvantages to buying a second investment property verse a brand new investment property, so don’t just believe the sales consultant, ask them what they are.
Property Investing Is So Simple And Easy, Anybody Can Do It!
If this statement was true then every single person in Australia over the age of 18 with a job would be building a property investment portfolio but they’re not, so why? The only way it can be simple and easy is with the correct information, strategies, right advice and good systems and procedures to follow.
The Next Hot Spot Is “_ _ _ _ _ _ _ _ _ _“ And You Will Make A Killing!
If somebody tells you this line, then run like crazy, fast. Nobody but nobody has a crystal ball and can predict future capital growths in the short or long term. Building a successful investment property portfolio is a medium to long term task so please be careful of the promised quick buck! Trying to predict the next hot spot, boom town, suburb that’s going to explode or promising quick massive capital growth is like going to a casino and picking red or black.
We Offer A Rental Guarantee On Our Investment Properties!
When we hear this one we advise our clients to ask one simple question, why? Why do you need to offer a rental guarantee? What’s wrong with the property? What’s wrong with the area? Why can’t you get a tenant? In our experience if a company or developer is offering you a guaranteed rental return, then it’s because they need too or the property will not rent itself. If you purchase a quality investment property in the right area you should not need a rent guarantee and remember to check rental vacancy rates first.
These Products We Have Are The Best Ones For You To Buy!
Beware the property investment company that comes to the first meeting with a heap of pre-selected property investments stock options for you to buy. A lot of property investment companies only reply on pre-selected product from certain builders and developers with limited suppliers ( maybe only 2 or 3 ) so try and deal with a company that has plenty of options for you to choose from.
Mining Areas Are The Best Place To Buy Because They’re Cash Flow Positive!
This is another good line of certain property investment companies that push a limited style & type of property investment product. In some cases it might be the right product for you, in other cases it may not be so be careful before committing. We believe you cannot and should not make blanket statements about what is the best investment property to buy for a client until you know all their facts.
If you have any questions about these or any other statements you have heard,read or been told please feel free to contact us and discuss them with us. The only guarantees we make to our clients is to be impartial, honest and ethical in what we tell you about residential property investing.