Domacom Advisor Articles
What's your clients property investment strategy ?
It’s important as Advisors when working with your clients, that you help them to understanding that strategy is important when establishing a property portfolio.
Once timeframes to invest have been determined, entry, hold and exit factors need to be considered. Entry to the market must factor whether your client is investing for capital growth or cash flow as a priority.
If it’s a cash flow strategy, what yield needs to be achieved and does it need to negatively, neutrally or positively geared? Read more here
Managing client expectations when selecting property
It’s very easy for clients to get excited about purchasing property as part of their investment and wealth creation mix.
Unlike managed funds, shares and other asset types that are governed by regulations and overseen by ASIC, the property sector is totally unregulated and sharks abound in the murky real estate waters, waiting to pounce on unsuspecting investors at every opportunity.
The property industry is guilty of dumbing down what is in fact a complex process - investing in property. Selling agents, project marketers, property spruikers and developers offer education, one stop shops, integrated programs and all sorts of tricky strategies to sell what is mostly poor performing investment property, and they do this for their own and their vendors benefit. Click here to read more
What does property advice cost ?
It’s important as Advisors when working with your clients, that you help them to understanding the way the property market works and that all property advice, free or not, 'costs' at some point.
Unlike the financial planning, mortgage broking and insurance sectors, the property sector is not regulated by a national governing body such as ASIC so alarmingly, there is no requirement for people involved in the property sector to have a minimum qualification to provide ‘property investment advice’.
As a result, there is an abundance of property spruikers, selling agents, developers and even brokers, planners and accountants who are all selling property based on the ‘free’ education, strategy and advice they provide. This property based education often takes the buyer down the path of buying whatever property or strategy the ‘expert’ has to sell, because it matches the ‘free’ education provided (the exception being those who offer genuine independent and unbiased ‘advice based’ buyer advocacy services). Click here to read more
Risk and property investing
It’s important as Advisors when working with your clients, that you help them to understanding that risk is very much a factor to be taken into consideration when buying direct property.
As you know, risk is the extent to which someone is willing to expose themselves to loss, in return for a particular gain.
Most home buyers and property investors wouldn’t consider risk as part of the process of buying property, be it personal risk or even property risk for that matter.
When establishing or growing a property portfolio, your client’s need to treat all investments as a business and consider risk as if they were a business owner. Otherwise everyone is simply gambling. Click here to read more
Which experts should clients engage when investing in property ?
Australians love property! Just as most people wouldn’t seek advice from friends about heart surgery if they weren’t a surgeon, it is important to realise that the same level of awareness should apply when investing hundreds of thousands of dollars in property.
It’s therefore also important as Advisors when working with your clients, that you help them to understanding that risk mitigation is factored into establishing a property portfolio and that engaging experts is part of the process.
Investors should think of property investing as a business – where their team of experts all form part of the success of that business. Independently, they help them to maximise the investment opportunity, minimise tax and/or risk, while collectively they combine their expertise to increase your success multi-fold. Click here to read more