Picture this (image below to help you). You are at a mate's BBQ on Sunday afternoon holding an icy cold beer in your hand with a succulent burger in the other and the subject of property investment comes up. It is always bound to when everyone you know has been making serious money out of cryptocurrency (up until recently anyway) and property.
It starts with what do you own, how much money have you made and then, what are you looking at buying next with a little bit of "I wouldn't do that if I were you. Be careful."
If you have been drinking alcohol, you are partly under the influence and it is amazing how it can change you ideologies about property investment especially if you are new to this. Why wouldn't you take advice from a 33 year old investment banker who has 2 properties and is looking for his third? Well, I can think of a few.
a) he is a banker not a real estate agent, obvious but easily overlooked
b) he may know a little bit about buying a property but all properties have gone up in the area, so is he really a genius or an expert?
c) he knows very little about your personal situation (unless you really talk a lot)
d) he may be exaggerating how well he has done (storyteller), especially after a few beers, like a gambler who tells you their wins but not their losses
So you have a number of choices for property investment advice;
1/ Local real estate agent;
2/ Property advisor - licensed RE;
3/ Financial advisor;
4/ Accountant; or
5/ BBQ companion
Our advice is to choose someone who is licensed to sell real estate. This doesn't simply label them as a salesperson. This is a person who lives, breathes and loves the real estate market and they have made it their profession to be an expert & understand it completely.
They should also understand your personal situation, the areas you are looking at investing in and hopefully other areas they can offer as alternatives to give you some perspective. Based on that criteria you would never listen to options 3, 4 or 5 but you would be surprised how many do.
So next time you go to a BBQ watch out for the BBQ advice. It is free initially but can often come at a huge price if you follow it. Better still avoid the topic of property investment altogether and talk about your latest holiday instead.
As an after thought I did google "BBQ Advice" and it came up with expert advice about all things BBQ. Go figure.
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