Peter ‘the Property Professor’ Koulizos, our co-host on ‘The Property Planner, Buyer and Professor’ Podcast and Chairman of Property Investment Professional of Australia, shares six signs that you’re about to be stung by a property spruiker.
As the property market appears to be in the early days of a recovery, this is timely advice. We have added our commentary to each of the six signs that show you are being sold to rather than receiving independent advice!
They haven’t disclosed a kickback or commission
If you are not paying a fee, how is the person and company getting paid? If there is no financial exchange for the property advice, then you are NOT receiving advice, you are being sold a property or strategy. It is important to overcome cognitive biases. You may want to believe you are receiving ‘advice’ and the salesman is looking after your best interests. This is likely to be very costly in the long run. Don’t turn a blind eye to the situation because it feels easy, keep yourself accountable to receiving quality advice.
They use pressure tactics
Do you have time to consider your decision? If you do not, I would strongly question whether you should be buying at all.
Offering discounts for signing contracts immediately
If you are asked to do something immediately, run!
Free seminars that come with hard sells
If you are being sold a property at a seminar, run faster!
Not following the same investment strategy
Your biggest investment decisions in life are rarely ‘simple’. It pays to invest time and effort in acquiring education and knowledge to maximise the chance of ensuring that you make the right decisions. Property purchases are, after all, often the most expensive decisions we make in life. It is not the place to cut corners.
Simplicity is beautiful, but almost always comes after wading through the complexity.
In terms of property, financial and lifestyle decisions, ensure you are clear on your short and long-term goals, risk profile, cash flow, changing circumstances and have a long-term Property Plan in place so your next property purchase does not derail future purchases.
Cut and run approach
Does the service provider offer to take you on a journey of education and advice, including providing an ongoing service after the purchase and settlement of a property?
Obtaining fiercely independent property advice free from vested interests like selling property, investment products, insurance or superannuation is a great start for ensuring you are stacking the odds in your favour!
It is important be mindful that either you pay a fee for independent advice OR you are being sold a product!
The property and financial industry provides two models for advice; product selling OR genuine independent advice. Not all that glitters is gold!