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Bad advice

Thursday 24 November 2016

Investing in a property is probably the second most important decision most of us will make yet 90 per cent of residential property investors fail to reach expected outcomes.

Why?
Most of them fall victim of bad advice or fail to have a plan. If they had a plan it would provide objectives, strategies and action plans incorporating the type and location of selected properties and the advice would have come from informed sources.

Over 50 years of residential property investment and consulting many situations have been encountered where bad advice has been offered. Not by those with malevolent intent but from good friends, neighbours and acquaintances with the best intentions. As the saying goes “if you are going to build a boat why do you get advice from the local butcher?” unless the butcher has been a boat builder with a good reputation.

Investors cannot take the risk of selecting the wrong property in the wrong location or the consequence could be a ‘modest’ retirement rather than a ‘comfortable’ one.

Some of the examples of the sources of bad (unqualified) advice:

• a good friend or relative
• Joe did well there and I will copy him
• my finance consultant recommended property for my Self Managed Super Fund and he introduced a marketer who sold me one of his properties
• I heard about the location in the media – newspaper, television, magazine
• I liked the location as it was near my home and I could inspect it regularly
• it was close to mum’s place and she could keep an eye on it
• I handled the property management myself.

We recommend a number of highly experienced and qualified sources of research and education to assist set your direction through making informed choices.

If you would like this information contact us at Mediwealth Australia.

Don V. Duncan F.A.I.M.
Principal Consultant
Mediwealth Australia