Questions you must ask a property investment consultant while planning to invest in a property.
Investing in property and real estate is one of the best investment methods that Aussies use to fund to gain several passive streams of rental income. Property investment also generates an avenue to receive capital gains down the track when the investor plans to sell an investment property for a profit.
However, the new property investment terms shall definitely seek advice from an experienced property investment consultant. It doesn’t just reduce the risk but also helps in opting for an ideal investment. This article considers five questions that you must ask before planning to invest in properties.
When it comes to a property investment course, Australia has some great options, so for newbies to invest, educating yourself via a course is also an option you can consider.
#1 – Is there any other way Investment Consultant is getting Paid By?
You will find some consultants receiving shares from third parties while generally earning their keep by charging their clients a fee at the same time.
Thus, you shall inquire about something you want to ensure you are being given unbiased investment advice.
Third-party bribes or commissions could come from another business, a real estate agent, or anyone else who stands to gain from the consultant convincing you to buy the property.
If you plan to proceed with an investment consultant receiving commissions and kickbacks, try to give it a second thought and take steps wisely.
#2 – Enquire about the license of the consultant?
The property market can be considered as ill-defined or conforming to specific rules for finding ideal financial advice about property investing. It is essential to be licensed when it comes to consultants in Australia offering financial and investment advice. Still, some in the property game find ways to be officially licensed and recognised, especially those who claim to offer “general advice.”
To ensure you’re dealing with a reputable and qualified licensed professional, you have every right to ask to see the consultant’s credentials and licensing information before initiating any commitments and business relationships.
Enquire if the consultant has a license and ensure that he has a background in accounting, investing, or other financial capacities?
#3 – Enquire about their Property Investment specialisation?
This is one of the vital questions anyone would like to know. While a couple of property investment consultants generalise on the type of properties they offer investment advice on, other consultants like to specialise their expertise.
For example, one of the consultants can have a good dose of knowledge and expertise in investing in units and high-rise apartments, and he opts for that particular area of the real estate market. Thus, for those more interested in investing in commercial properties, then an advisor that focuses on apartments will perhaps be a good fit for you.
You’ll either have the choice of choosing someone who specialises in your area of interest or a consultant that offers property investment advice across the board.
#4 – Ask if you are directly speaking to a property Investor or if he is your teammate.
When it comes to seeking advice from an industry professional on real estate investing, you need to be extra conscious that you are directly contacting a property consultant. A qualified professional usually possesses a good dose of industry knowledge and contacts and specialises in property investing.
After all, you wouldn’t like to take trading pieces of advice for the stock market from someone who didn’t trade in stocks before. This applies to guidance on property investment. You would like to get advice from someone who is currently actively investing or has at least invested in property in the past.
You can enquire and explore their investment portfolio, or you may ask them to share proof of past investments.
#5 – Will you get genuine support?
You’ll want to sit down with your investment consultant and define precisely how they will help you and their support if you ever get stuck in the future?
Try getting the answer if the consultant you are planning to choose can help you select the ideal property to invest in and formulate the investment strategy. Enquire if it would be easy to reach your consultant, and he will be available when the need arises to solve any investment-related queries?
In other words, note all of these points for the first time you meet with your potential investment consultant so that you both have a complete understanding of what you expect from each other.
Bottom-Line
When getting advice or assistance from a property investment consultant, always have a good questionnaire to ask before your first meeting. This will help you avoid biased advice.