Many people who chose to create wealth through property will admit that property investment is a competitive game – the stakes are high and good returns are not always guaranteed – but most of those who have actually achieved their goals say that the secret to success lies simply in finding the right professionals to work with.
Simon Pressley, the managing director of Propertyology, spends his days analysing data and crunching numbers that are relevant for identifying prime real estate markets. However, despite the number of years he dedicated to the profession, he has never found a single clear pattern to determine the answers to even the most frequently asked questions about investing in properties.
“It’s never one piece of information that underlies our decision. It’s a whole heap of information and … collectively joining the dots,” he said. “We’re gathering a whole heap of information and then trying to paint a picture of what the future [looks like] – good or bad.”
According to Smart Property Investment’s Phil Tarrant, who is an avid investor himself, making decisions as a property investor requires sophisticated skills, but not everyone has the time and capacity to actually go through rigorous training and seminars to acquire these skills. But how did he successfully build an impressive multi-property portfolio in less than a decade, all while attending to a full-time job and a growing family?
“I speak to investors … professionals and experts … around property and I get as much or more information than anyone else I know,” he said. “I need to understand what I need to do with that data for me to make a decision … That’s why people go to people like … Simon, for that advantage in the marketplace.”
Simon agrees that the best decision a property investor can make throughout his journey is to partner with property professionals who are willing to understand his goals, as well as his capabilities and limitations.
“[You should] focus on finding the most skilled person to help you make [decisions], and then you support them. The results tend to take care of itself after that,” he said.
Considering the large amount of information accessible for free nowadays, many property investors understandably suffer from “information overload,” which can usually postpone a journey or ultimately derail it. According to Phil, working with a reliable team will help a property investor filter all the information available and maintain focus on those which could help them succeed.
“Using a buyers’ agent, I have a big advantage in the market against people who don’t have that support … [because these] people I’m using know a lot more than [do-it-yourself investors],” he said. “They’re able to price properties more effectively, they’re able to understand whether or not a property’s a good property or a bad property, whether the location is a good location or a bad location, based on all these different dynamics.”
Moreover, being surrounded with property professionals throughout their journey can also help an investor establish relationships that will be instrumental to the growth of their portfolio.
“The buyers’ agents are probably buying a property a day – that’s [a] lot of skills they’ve acquired over many, many years … They’ve got relationships in some cases that will count, so they might get preferential treatment from the Ray Whites of the world who are selling a property,” Simon said.
“Skilled buyers’ agents can cut through [smoke and mirrors] ... That’s an example where a DIY [investor] is disadvantaged over a client who’s represented by a professional.”
Tune in to Simon Pressley’s episode on The Smart Property Investment Show to know more about his advice for do-it-yourself investors as well as his checklist for what investors should consider when looking to regional towns for their next investment.