The papers regularly tell horrific stories of people who have lost hundreds of thousands of dollars on investments that could have been avoided with correct advice. A young couple were awarded investors of the year by a reputable property magazine, but it turned out later that they had invested in a mining town and now are facing financial ruin as tenants left and property values plummeted. The banks of course protect themselves and demand from borrowers cash to make up this loss in value.
I am sure there are hundreds if not thousands of people who are financially distressed from buying in mining towns or regional towns.
"We alone protect buyers" is my proud statement. We sure don't have a crystal ball but as much as possible we try to anticipate the problems and move our investors into areas that maximise the opportunities and minimise the risks. As the governor of the RBA warned a couple of years ago "buying property is not a risk free investment".
There are also thousands of property investors who have had long vacancies and this has led to them falling behind with their mortgage repayments, then onto mortgagee and possession sales and bankruptcy. The "advisers" put them in an area where property did not suit the vast majority of tenants in that area. This often happens. Or they put them into an older property which quickly requires a lot of maintenance. Tenants these days prefer newer properties. The deserted investment soon becomes a nightmare investment. Others find the claimed rent impossible to achieve and the substantial drop leaves them financially distressed again leading to the above results. Again this is from believing the wrong "experts".
How do you protect yourself?
The people you are facing are licenced agents. Possibly you are unaware that by law they have to get the highest price off you and have no legal obligation to your later financial position. This is why I started the Club in 1994. My passion is helping investors to create wealth and not make the same mistakes that I did.
Some tips if you have bought elsewhere; - Get their credibility in writing - Ask how many properties have they bought themselves? Over what period? - What was the quality of that property? If it is a series of cheaper homes in poorer areas then beware, keep searching for a better expert. - Don't believe their claims and insist that all claims are put in writing. This can then be used by government agencies to sue the promoter or the sales person for false and misleading information to get a quick sale from you. "Experts" will refuse to give their promises in writing.
Do your research and educate yourself before taking the next step. Always get as much information as you can and really know who you are buying from.
I love property!
Kevin Young Club Founder