Beware the Property Spruiker…

The process of buying an investment property should be part of a well thought out financial strategy. A strategy that takes into account current earning capacity with your long term objectives. The importance of balancing this with the correct property investment for you is why you must have a strong investment advisory team.

The term “Property Spruiker” has received significant press coverage but do you know how to identify one??

“Spruiker” – someone who promotes his own cause; a person standing outside a place of business trying to persuade patrons to enter, or vigorously trying to persuade customers to purchase their wares…

The key element in this definition is “someone who promotes his own cause..” The property spruiker is the person that is not searching for property to meet your needs, rather selling stock that they have listed in a one size fits all approach. Property marketing groups are there to push and sell the stock that they have listed to the property investor without any consideration of their financial plan, they are there to “sell their wares..”. Quite often you will find that they concentrate on a specific region, or project, without giving any consideration to other geographical markets.

Many groups will purport to be an investment sales agency whilst effectively being a project marketing project marketing organisation. This means they only take on a project if they can have it from day one, widely marketing each project and then hand the project back to the developer once all the cheaper and easier stock to sell has gone. Many are also incentivised by the developers by way of extra commissions that they build into the inflated purchase price to push harder and get the stock out to their network. Because of this structure clients of these groups are always paying top dollar.

Property investment is an exciting prospect and should also be an enjoyable one that is a step towards your financial goals. You should have a co-ordinated purchase plan when going into property investment that sets out your timeframe and objectives. Having an advisory team working with you; financial planner, buyers advocate, mortgage broker, all working with your financial goals in mind. That should be your approach to property investment.

Written by Jason Bennett – Investor Advocate . The advice is general advice only and we have not considered your personal circumstances. Before making any decision on the basis of this advice you should consider if the advice is appropriate for you based on your particular circumstances.