Invest
How to spot a property spruiker
Property is understandably popular with SMSF trustees, but you’ve got to be careful of who you’re dealing with when making a decision that could either make or break your retirement plans.
How to spot a property spruiker
Property is understandably popular with SMSF trustees, but you’ve got to be careful of who you’re dealing with when making a decision that could either make or break your retirement plans.
Property as an investment choice is going through the roof among Australians, including SMSF trustees, attracted to potential capital growth prospects and passive income in retirement, in the form of rent.
It goes without saying that SMSF property investment is unlocking great opportunities for savvy investors. However, unlike other asset classes, it’s important to be aware that the property investment advice sector is unregulated. Anyone is free to don a shiny suit and spruik properties for investment
Just as SMSF trustees have been quick to explore the opportunities that SMSF property investment presents, so too have unscrupulous operators, out to make a quick buck at the expense of innocent trustees - a daunting thought.
The good news is property spruikers are easy to spot, if you know what to look for. Here are my top tips for spotting and avoiding a foul player:
Sales pitch doesn’t equal education – There are many property companies and real estate agents running so-called ‘educational’ events targeting SMSFs. The truth is, these events are often little more than a fancy sales spiel. Tell-tale signs include unbelievable discounts and ‘cookie-cutter’ strategies – anyone who tells you there is only one way to invest in property is not giving you the full story.
Some claim its ‘easy’ – Don’t fall for claims that property investment can be made easy. If property investment was so simple and easy, then surely everyone would be doing it. Neither SMSFs nor property investment are the playground of simple investors. And easy doesn’t necessarily mean smart. You’re talking about your retirement nest egg here, so avoid being talked into something ‘easy’. You want your property investment to be a smart one.
High pressure selling – This is a common tactic property spruikers use – rushing you into decisions and contracts and saying a property ‘will be gone’ if you don’t act right now! This is all part of a play to cut out your ability to make a well-considered decision. Any decision related to your retirement should only be made based on thorough research, detailed facts and due consideration.
Hidden fees – Dodgy operators are also reluctant to talk about their fees, commissions and any kickbacks they receive. Of course it’s a little hard to look for something that’s hidden, but if you can’t get clear documentation of fees and charges, it’s a good sign you’re not dealing with an ethical operator.
When it comes to SMSF property investment, selecting the right location and the right property is perhaps more important than ever. After all, this is your retirement nest egg on the line.
It is essential that you understand what an SMSF can offer you when investing in property as well as what the limitations are. Even though our industry has plenty of spruikers, there are many genuine professionals who can help you get the edge when investing in property. Seeking out professional property investment advice from someone with formal qualification, or a buyer’s agent who specialises in investment properties, can be a great way to ensure you’re on track towards a successful investment.
If you chose to go it alone, then be sure to do as much research as you can before selecting a property, and remember to select a location and property based on investment merit, rather than any emotional response.
Ben Kingsley, chair, Property Investment Professionals of Australia
RELATED ARTICLES
Property
Young buyers poised for a comeback as 5% First Home Guarantee takes effect
In a move set to reshape the Australian property landscape, the government’s revamped First Home Guarantee is poised to open the doors of homeownership to a new generation of young AustraliansRead more
Property
AFG Securities waives settlement fees for first-home buyers, signalling strategic shift
In a strategic move aimed at easing the financial burden on first-home buyers, AFG Securities has announced the elimination of settlement fees on select loans, potentially saving customers up to $699Read more
Property
From trust woes to wealth: Australian agencies' secret to boosting prices
In Australia’s residential market, trust is no longer a nice-to-have—it’s a pricing variable. Persistent distrust of real estate agents is depressing vendor outcomes and inviting regulatory heat, but ...Read more
Property
Reality check for first home buyers: Affordable suburbs with 5% deposit
In a significant development for Australian first home buyers, a new property search tool from Aussie Home Loans is set to transform the way prospective homeowners approach the market. As the Federal ...Read more
Property
Trust as a performance multiplier in Australia's real estate market
In Australia’s A$10–11 trillion housing market, trust is emerging as a crucial factor that sellers and agencies can no longer afford to overlook. Traditionally viewed as a soft metric, trust is now ...Read more
Property
LJ Hooker Lake Macquarie makes a splash with Belmont buy as real estate consolidation looms
LJ Hooker Lake Macquarie’s acquisition of the Belmont office, including its rent roll, is less about shopfronts and more about balance‑sheet resilience. In a market where listings ebb and flow with ...Read more
Property
Twice the demand: the case study behind Melbourne’s first‑home buyer surge
Melbourne has quietly engineered one of Australia’s most consequential housing turnarounds, with first‑home buyer demand running at roughly double the national pace and four of the top five buyer ...Read more
Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more
Property
Young buyers poised for a comeback as 5% First Home Guarantee takes effect
In a move set to reshape the Australian property landscape, the government’s revamped First Home Guarantee is poised to open the doors of homeownership to a new generation of young AustraliansRead more
Property
AFG Securities waives settlement fees for first-home buyers, signalling strategic shift
In a strategic move aimed at easing the financial burden on first-home buyers, AFG Securities has announced the elimination of settlement fees on select loans, potentially saving customers up to $699Read more
Property
From trust woes to wealth: Australian agencies' secret to boosting prices
In Australia’s residential market, trust is no longer a nice-to-have—it’s a pricing variable. Persistent distrust of real estate agents is depressing vendor outcomes and inviting regulatory heat, but ...Read more
Property
Reality check for first home buyers: Affordable suburbs with 5% deposit
In a significant development for Australian first home buyers, a new property search tool from Aussie Home Loans is set to transform the way prospective homeowners approach the market. As the Federal ...Read more
Property
Trust as a performance multiplier in Australia's real estate market
In Australia’s A$10–11 trillion housing market, trust is emerging as a crucial factor that sellers and agencies can no longer afford to overlook. Traditionally viewed as a soft metric, trust is now ...Read more
Property
LJ Hooker Lake Macquarie makes a splash with Belmont buy as real estate consolidation looms
LJ Hooker Lake Macquarie’s acquisition of the Belmont office, including its rent roll, is less about shopfronts and more about balance‑sheet resilience. In a market where listings ebb and flow with ...Read more
Property
Twice the demand: the case study behind Melbourne’s first‑home buyer surge
Melbourne has quietly engineered one of Australia’s most consequential housing turnarounds, with first‑home buyer demand running at roughly double the national pace and four of the top five buyer ...Read more
Property
First‑home buyers now anchor Australia’s mortgage growth — but the risk maths is changing
Great Southern Bank’s revelation that nearly one in three of its new mortgages went to first‑home buyers is not an outlier. It is the leading edge of a broader market realignment powered by government ...Read more
