Investment Seminars
Property is a very powerful investment vehicle that is worth serious consideration in any investment portfolio. However you should be aware that many investment clubs and seminars get paid for the sale of the properties they promote. Often (not always) the strategies being discussed are sound, however that has nothing to do whether the properties being promoted, is an ideal investment for you. You should always do your own research, and ensure some of the following fundamentals...
Purchasing at the right price.
Now this might seem too basic, if you sign a contract surely that is market price right? It is easy to get caught up in the emotion of creating wealth and not even check whether you are paying a fair price for a property. Alternatively you may just trust or automatically think that you are. This is not an area you can afford to get wrong, so always do your own research.
There was a time where two-tiered marketing was a specific strategy used by developers to increase their profits. They would develop property that would sell for $X in their local market, and would travel to a foreign market (usually interstate) to sell the same property for $X + additional margin. This was called two-tiered marketing, and although it is not widespread as it used to be, paying too much for property still happens in the market today. During a growth cycle this would not be as obvious, because it took less time for the additional margin to be absorbed, but that does not mean it didn't still happen.
If you pay too much for a property, it can set you back years in your development. Most property today is negative cash flow, meaning it costs cash each week to hold rights to the property. Excluding costs to purchase the property, if you pay $40,000 over market value and your cash flow position (after tax) is minus $150 per week. You are effectively paying $150 per week to throw away $40,000. If you cannot sell the property for more than what you owe the bank, then you could get stuck, and it happens. Even worse if you get stuck in a falling market; it could be years before you recover.
Don't be put off investing, if you want the retirement you deserve you will need to invest, but this is not something you want to get wrong. There are good organisations with sound investments available, and then there are others. We provide our members with completely independent support when investing in property, and give you information often not received through many seminars and investment clubs. We do not sell or promote any specific investments, nor receive any financial benefit from the advice we offer, except from your membership fees.