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Taking the emotion out of property investment

HerCanberra Team

Question: What do you think is the key factor in selecting a great investment property?

  1. How much you pay
  2. Intimate knowledge of the area/city you’re investing in
  3. Should you buy off the plan?

According to Tony Barber and Peter Ingram from Property Professionals Australia (PPA), it’s none of these. These veterans of the building and property industry say the key to successful property investment is much simpler – it’s education.

Tony says it’s not a mistake reserved for the inexperienced only. Many people find property investment difficult from the very beginning because of preconceptions and lack of guidance and knowledge.

“I don’t think it’s only young people that get it wrong – most people don’t have enough education and experience to know what the key elements are when investing for a successful outcome.”

Tony and Peter’s experience has lead them to develop an eight step ‘Done4You’ program that allows them to tailor an experience for their clients from the very start of a client’s interest right through to the settlement of the finished property.

“Education and understanding what’s right for a client is key,” explains Tony. “With every client we see, we always go through a process at the start where we look at where they are now and what they know already so we can fill in their knowledge gaps in terms of investment education before we look at what investment models would suit them.”

“I was a property seminar junkie and I read every book under the sun about property,” explains Peter. “But I kept sitting on the fence because I had all these smooth talking sales guys in front of me trying to sell me on hype, sales jargon and over inflated promises, which only kept me stuck, costing me thousands.”

We asked Peter and Tony for their tips for women looking to invest in property. Here’s what they had to say.

It’s ok to buy off the plan

Peter stresses that buying an existing house because you can ‘see’ the investment in front of you can be the downfall of some investors.

“Often they believe that buying an established house is the way to go. But there’s higher stamp duty costs, minimal to no depreciation and tax deductions, unforeseen maintenance diminishing cash-flow and can limit property growth.”

Understand what makes a good investment

One of the reasons people are wary about seeking professional advice is because they get pushed to take immediate on the spot decisions by investment advisors whose only intent is to sell.

“A lot of people decide to invest down the road because they trust their own backyard but what they don’t get is what makes a good investment – a lot of time they’re buying the wrong property type, they’re paying the wrong price, they’ve been persuaded to buy something with overinflated price returns and a lot of the time they didn’t need to pay that much to get returns.”

“It’s not about a get rich quick scheme it’s about sustained capital growth over a number of years,” adds Tony. “People need a simple process that’s done for them.”

Do your research

Tony and Peter say not enough companies do their research on the ground as to what’s driving population growth in desired areas, what economic factors provide the confidence to why the need is so great and whether there’s longevity in an investment in that area.

“Do your research, understand your market and understand whether you even should invest locally or whether you’re better off looking at growth cities,” answers Tony. “Ask what’s going to drive capital growth and strong return.”

Ask for help if you need it

If ‘capital growth’ and ‘strong return’ make about as much sense to you as ‘corporate synergy’ and ‘nimble economics’, Tony and Peter stress that seeking help from an experienced professional is the best option.

“The main reason we developed our eight-step process was we wanted to change the way the industry operates – we saw too many people drop into the wrong market, pay the wrong price and get the wrong result or make really big mistakes. We wanted to create a completely new process, which starts with a discovery session where we look at the clients as individuals.”

Insist on staying ‘in the loop’

While PPA’s approach is to do “all the hard yards” themselves, they’re firm believers in keeping their clients very much in the loop.

“We take videos at site inspections so that clients are kept up to date on their project,” explains Peter.

“We’re from a building and development background so we understand those aspects of investing – wanting to know what’s happening at all times to the physical side of things.”

Ask around

“The greatest feedback always comes by way of referrals to friends or relatives and, of course, repeat clients,” says Peter. “Some clients have gained returns of 18-20% in the first two years, which is an amazing result,” explains Tony. “The process itself is why that happens.”

One size doesn’t fit all

“The biggest point of difference for us is not only the ‘Done4You Process’ we use but the fact that we don’t work off stock lists,” explains Tony. “We work with a number of builders and developers both in Canberra and interstate to find the right property that suits your individual needs and financial situation”.

“It’s about ensuring that average Australians have a good financial future to look forward to and a comfortable retirement.”

Interested in learning more about Investment Property? Click here or call 02 6152 1506. 

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