OD #15 - Before You Buy Property… Listen to THIS About Advisors

Buying property is one of the biggest financial decisions you’ll ever make — and choosing the wrong “advisor” can cost you years and six figures. In this episode, we break down what a real property investment advisor actually does, how they connect you with the right dream team (broker, accountant, conveyancer, property manager), the red flags to avoid, and the non-negotiables you should check before trusting anyone with your next move.

Chapters

• 0:00 The Big Question: Advisor Or DIY
• 1:57 Why Investors Get Stuck And Overwhelmed
• 3:11 What A Good Advisor Actually Does
• 5:12 Building Your Property Dream Team
• 6:26 Who Should DIY And Who Shouldn’t
• 7:32 Fees, Value, And Capital Growth
• 8:40 Non-Negotiables And Red Flags
• 12:07 Pressure Tactics And Timing
• 12:47 Final Verdict And Ongoing Support
• 14:12 Closing Reminders And Share Request

Transcript

SPEAKER_01: 0:00

In this week's episode, we're tackling one of the biggest questions in property. Should you actually use a property investment advisor or can you do it yourself? We're cutting through the noise and diving into the real truth. What a good advisor actually does, how they can help you avoid six-figure mistakes, how they connect you to your property dream team, and what red flags to watch for you so you don't get burnt. Plus, I'll tell you the number one thing your advisor must have before you even think about working with them. Whether you're a first-time investor or building a portfolio, this episode will give you the clarity you've always been waiting for.

SPEAKER_02: 0:46

Welcome back to another episode. Before we get into it, please note that is what you were thinking. We'll get you into the correct professional. Get the job done properly. Let's get into it.

SPEAKER_01: 1:13

All right, welcome back to another episode of the Finance Bubble Podcast. As you just heard, we're diving into a question that so many people I see wrestling with, um, especially when they're thinking about buying their first investment property or building a property portfolio. And that is, should I use a property investment advisor, also known as a buyer's agent? It's a big question. There's a lot of noise, a lot of opinions, and let's be honest, a lot of conflicting information online, because you get a lot of people who are just in it for the wrong reasons, and then you have a lot of people who are in it for the right reasons. So a lot of people get confused. So today, going to break down this properly, not from a place of hype, not from a place of sales, but a place from experience. So let's get into it. Now, the first thing we want to talk about is why people get stuck. So most people don't struggle to invest because they're not smart enough. They struggle to invest because the information that they're they've got on their phones, online, it's it's overwhelming. They don't know what sources to trust. Like, for example, if I click on a company, a property investment company, for the next two weeks, I'm going to get ads from probably 20 to 30 different companies, which are similar. So you don't know which ones to trust. They don't know what actually matters when making a property decision. And no one has taught us how to build wealth the right way. People can read books, can listen to podcasts, but every single person's way is completely different. Some people are happy with one way, some with the other. So there's no right or wrong way. When you're dealing with a purchase that can be worth half a million dollars, you don't get the luxury of trial and error. You want to make sure you get it right the first time. There's so many horror stories of people trusting the wrong team or doing it themselves. And five, 10 years later, they come out worse off, losing a bit of money, buying in places that were hyped up, didn't actually grow in value or worse, went backwards in value. So this is where the conversation about an advisor really starts. What a good property investment advisor actually does is they understand your current financial picture. They identify your long-term goals, not just your goals in the next five years, but we're talking literally 20 years, 30 years, putting you in the right property, which can get you your next property if that's what you're wanting to do, or get you in a property which can actually help support your family down the track or use solely as retirement income with a rental income. So they identify your long-term goals. They figure out your borrowing capacity and how to protect it. I'll come back to this later. This is where they connect you to a dream team. So borrowing capacity means mortgage broking. So they may connect you to one of their mortgage brokers. They help you choose the right strategy, they educate you on markets, risks, and the actual realities of investing. And they create a plan that actually suits your life. So the main goal for a good property investment advisor, you know, for a client, is they remove the guesswork, they remove the emotional side of decision making. So many mistakes happen when individuals get emotionally attached to a property because it looks so nice, great area, but the numbers don't stack up. So you have to put your emotions to the side. So this is where having a team can do that for you. You're emotionally disconnected. So this definitely helps. It's one of the most important factors. And they make sure your choices aren't random and they're intentional. So this is where all the research comes into it. They'll look at your internal migration, your infrastructure spend, government spending in the area, your vacancy rates, your capital growth potential, everything together, this is where they come into it. One of the biggest advantages of working with a property investment advisor, like I just mentioned before with the mortgage broker, is the dream team. So when you're buying an investment property, you don't just need one person and you don't just want one person. You want and you need a whole team. So what I'm talking about, a team, I mean you got your property investment advisor, they connect you to a mortgage broker who helps you understand investment lending. And then through the property process, they'll connect you to a conveyancer who specializes in property contracts. So when it does come to that time, they review the contract and make sure that all your clauses, for example, your finance and your building and pest inspection clauses are in the contract. Connect you to an accountant who knows investment structures and tax, and a property manager who can actually protect your asset and help you get a tenant at the end of the day. As well as this building and pest inspectors that generally will help you organize that, and quantity surveyors for depreciation schedules at the end of the purchase. So that just helps you get up to 40 years back on your property. You can claim it to 40 years of depreciation on your asset. So the team matters. If one part of the chain is weak, the entire experience or even your entire investment is weak. So that's why you need the dream team. You need all the professionals who work together, who that they know how each other work. They've done it before many times. Come together as one. A good advisor, in my opinion, they don't just guide your decision, but they surround you with the best professionals that they can and help you get set up for long-term success. Now, I've been reading online the last 24 hours, hence why I'm talking about this. And it's fair to say not everyone needs an advisor. A lot of people think they don't need one, but then they actually do. But there's some people out there who are very, very into the property research themselves and they don't need it because they they believe, you know, they're correct all the time. But if you love doing deep research, understanding property cycles, understanding and knowing how to analyze deals, and also if you have the time to look at hundreds of properties every single day and you're confident in assessing risk, then yeah, go for it. Like definitely do it yourself. But if you're like most people who are busy with work, you've got families, you've got your business, you've got just general life, and you don't have time to turn property investing into a second full-time job, then you definitely need an advisor if you're wanting to get serious about your long-term wealth and your future. So those are the points generally, which as a property investment advisor, the most important. And they're very time consuming. So if you think you can do it all yourself, great, but good luck. But that's why there's companies out there who can assist with doing those things. Now, the last 24 hours has mentioned, there's been a bit of chat online about people, you know, popping in these group chats saying they want an investment advisor, then other people saying what's the point of them? Um, you know, they they rip you off. But if you're someone who wants clarity, confidence, a plan, wants to avoid costly mistakes and doesn't want to be guessing on someone in your corner for the long run, then using an advisor is literally probably the most powerful decisions you can make. The way I say it is each advisor's fees are a little bit different. Um, there's stock standard fees across Australia, but they all kind of vary a little bit. But the fee for actually getting the advisor on board and helping you is far less than the potential growth that you can make from the right property that they put you in. So the capital growth far outweighs the initial investment fee. So that's the way I look at it. And when I speak to clients, that's the way they see it as well, because it's it's logical, it makes sense. So if you are serious about it, it definitely is a really impactful strategy and a way to actually find a property, get someone who's experienced to do it for you. But with saying that, this part is absolutely critical. There's some amazing advisors in the industry, but there's also people who use the word advisor when really they're just salespeople. So here's what you must look for when you are speaking to a team who can potentially help you find the right property. So I think personally is they must invest in property themselves. If an advisor who is advising you on buying an investment property and they haven't done so in the past, if they don't have skin in the game, if they're not building their own portfolio and no real experience, that is a red flag. You want someone who's been investing in property, they've been through the ups, the downs, the risk, the decision making, and someone who actually walks the walk. You need someone who has one, either invested in property in the past or two, actively investing in property. So what's the point of going to a property investment company when they don't even invest in property themselves? It is pointless. It's like going to footy training and listening to some individual teaching you how to kick a football when they've never kicked the football themselves. How are you going to learn the right strategies and the right structure of kicking that football right? You're not. You're going to be taught the wrong way. And then it's down the track when you play a game of football, you're going to get absolutely pumped. So that's the exact same with this. If you take advice from individuals who have never invested property themselves and they're just pushing sales pitches down your throat, well, in five, 10, 15 years, it would definitely come to bite you in the bum. Number two, they must hold the correct licenses. So every state has different requirements. Anyone giving property advice or dealing with the real estate should have the correct licenses or registration or even advisory qualifications. There's a few different boards trying to regulate the whole industry, which would be a good thing. Make sure everyone who is in the game is actually qualified because there's a lot of individuals who aren't. So make sure they have a license. You know, just ask them, are you licensed in Queensland, Victoria, what states, for example? If they can't show you their license or if they dodge the question, turn around, red flag, the licensing actually protects you as a consumer. So definitely ask those questions. And the third thing I think is really important is they should ask more questions to you than they answer. So when we speak to clients, we're trying to find out every single thing about their past, their present, and what they're wanting to achieve in the future. So they must dive deep into your situation. A bad advisor will literally, from the start of the call, you'll be able to pick it up instantly, will just talk at you, pushes a generic plan down your throat of this is the best way to do it. You're going to buy this property without even getting to know you and your goals and what you're wanting to achieve. So ideally, the individuals you speak to will want to understand your goals, your income, your debt, cash flow, risk tolerance, family situation, long-term vision. And if they don't ask any of those questions, or if they're just going straight to the property, a cookie-cutter approach, then they're not advising you. They are selling you. It's obvious there's so many out there. So make sure you really just take the time, have a think. If they're saying, if they're not asking you those questions, I think it is time to run and speak to someone else. One of the last ones, which I think is something to look out for, is you don't want a company who is pressuring you. So if someone pressures you, if they use urgency or fear tactics, or if they want you to make a fast decision on the spot, then I think that is a massive warning sign. The way we look at it is you know, the property journey should feel supported, not rushed. So we have clients who just get lucky and we find them a really good property within a week. And then we have another side of the fence where some clients are waiting for one to two months because we're we're waiting for the right property and for their right goals, for example. So if anyone's pressuring you to jump on board quickly on a property, that is a bit of a red flag, in my opinion. After everything, I guess the main question is should you use a property investment advisor? And here's my honest answer. If you want clarity, education, support, strategy, and access to a professional team. And as I mentioned earlier, if you don't want to make a six-figure mistake, then yes, a property advisor is an absolute game changer. If you want someone to look after it all for you and look after the whole process from start to finish, then no brainer at all. As I mentioned, the capital gains over time, if you're with the right company, far outweigh the initial investment fee that it costs to actually get an advisor on your side. So, in my opinion, I think it's definitely a good idea if you're wanting to do that and get someone else to do it all for you. But if you're you know experienced, confident, and you're prepared to do the work and be looking at the market and realestate.com and speak to agents to get off-market listings like a hawk, then you might be fine on your own. But yeah, there's no right or wrong. There's only what gives you the best chance of success. And I think that is getting a professional team in your corner because you've got the team for life. They continue to review your property. You know, every company is different, but it's but it's on a regular basis. So they'll review that, you know, it might be every six months, 12 months to see if we can go again and get you moving and building up that portfolio that you that you want. So thanks for tuning in today. If this episode brought you value, do us a favor, um, share it with someone who's thinking about getting into property because the more you share it, the more individuals it actually helps, and the more that we, as the finance bar, will get out there into the public eye. So remember, wealth isn't built through luck, it's built through intention, strategy, and smart decisions. And I do believe having a property investment advisor on your side helps you build wealth. But we'll see you on the next episode and have a great morning, afternoon, or night whenever you're listening to this chat.

SPEAKER_02: 14:47

We hope you enjoyed the episode as always. We know exactly what to do.

SPEAKER_01: 14:51

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