Finding the right property investment advisor

Are you wanting to purchase property but not sure where to start?Are you looking to diversify your portfolio into other property types that you are less familiar with?

To get through these hurdles it is often good to engage a professional property investment advisor.

The next question is what and who are property investment advisors and how do you know if you have a good one?

What is a Property Investment Advisor?

A property investment advisor is a suitably licensed professional who will act in an independent and unbiased manner on your behalf. They manage the process of determining what type of property investment is right for you, to sourcing, negotiating and settling the property sale.

While there is no specific license for a Property Investment Advisor, being a member of reputable independent industry bodies such as the Australian Property Institute ( API ) , Real Estate Buyers Agents Association ( REBAA ) or Royal Institute of Charter Surveyors ( RICS ) is a must. Members of all these three have to be appropriately qualified and have a suitable level of experience to gain membership and licensing. Members of the Real Estate Institute of NSW (REINSW) also require licensing and practical experience, but as their members main purpose is to represent the vendor, there is an opportunity for a conflict of interest, and to not represent the best interest of the purchaser (you).

How do you know if you have a good one?

Experience is something you can’t buy; you have to do the time. There are plenty of new comers to the market, who have had some personal success in property and now feel empowered to tell the world how to do it. This type of thing may work while the market is buoyant and if you stick with simple properties, and if you can afford to take losses. When the properties have a bit of a quirk, or some hidden issues this is when you need experience on your side. Look for the companies who have been around for over 10 years and whose staff has a property background. 10 years in corporate finance maybe great, but does that make them qualified to spend hundreds of thousands of your money on property? Personally, I would rather a long term property industry professional.

Horses for Courses

Like all industry experts, property investment advisors will often specialise. Having a broad grasp of property will certainly open you up and educate you on the benefits on all property classes, not just one they know about. Once again experience is key, commercial, industrial, development, agriculture and regional properties all offer some great investment opportunities, but you need to engage someone who knows what they are doing, especially if you don’t.