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Beware the hype of property investing
If you’re looking to get-rich-quick through property investment you’re potentially taking massive risks, and you typically need to have a fair bit of cash in order to participate in schemes that offer this promise.
Blogger: Phillip Tarrant, editor, Smart Property Investment
I spent last weekend at the Home Buyer and Property Investor Show in Sydney. Property investors come from all walks of life and I’d be hard pressed to try to stereotype what the ‘average’ investor looks like.
Over the weekend I spoke to people from all over Sydney, representing a cross section of Australia. But one theme I did notice was the number of ‘younger’ people interested in property investment.
By this I’m referring to those in their early-to-mid twenties who appreciate the value of kick starting their portfolio early, and are drawn to property investment as a wealth creation tool.
It was refreshing to see such ambition in the ranks of the younger investors. Yet many of them seemed bewildered by the amount of information available at the show – and the myriad options available to them as investors.
There were some very good property salespeople at the show. You know the type: slick marketing material, smart suit, plenty of energy and the promise of excellent yields or capital growth. While this may indeed be the case in the products or services they were offering, I reiterated the importance of research and due diligence to every young investor I spoke to.
It’s easy to sell the dream of property investment – get-rich-quick without doing the hard work. It’s quite common in property investment and something we don’t support as a magazine.
If you’re looking to get-rich-quick through property investment you’re potentially taking massive risks, and you typically need to have a fair bit of cash in order to participate in schemes that offer this promise.
Younger investors – and all investors in fact – need to appreciate that property investment is tactical, with decisions based on facts, an intimate understanding of the markets you’re targeting based on a structured and well planned strategy.
If someone is promising to make you rich quick thorough property investment, alarm bells should ring. Stick to the basics, don’t get carried away in all the hype, and get educated. These are the stepping stones to success.
About Phillip Tarrant
Phillip is a media professional as well as an active property investor. He has over 10 years’ experience reporting on the mortgage and property markets and has worked extensively with Australia’s leading mortgage lenders and brokers as a corporate communications and public relations consultant. As a property investor Phillip advocates the principals of research, due diligence and surrounding yourself with the right team to make informed and educated property investment decisions. As well as being editor of Smart Property Investment, Phillip sits on the Board of the Property Investment Professionals of Australia (PIPA), the peak industry body for the property investment industry. He also sits on the Board of Publishers Australia, which represents best practice, innovation and professionalism in publishing. These two positions offer Phillip insights and awareness to the latest issues, activities, techniques and best practice principals across both industry sectors and ensure Smart Property Investment remains focused on delivering quality content to its readers.
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