Why you must look past glossy property brochures

Real estate marketing is not new because you can’t sell a secret after all.

These days, though, there seems to be so much money spent on marketing materials solely to convince buyers of how spectacular a property is.

Don’t get us wrong: marketing is part and parcel of the sector, but it should never replace research or working with an expert team.

Market fundamentals 

The market softening in most major capital cities is well under way, however, alarmist media headlines would have us believe that prices are falling dramatically everywhere when that is just not true.

There remain good buying opportunities across the nation if you know what to look for and where to look for them.

The key is to work with the right team because you don’t know what you don’t know, so they can assist you with the right advice and the right research to expertly fill in any knowledge gaps.

Successful property investment has always been about market research and fundamentals but never more so than when the sector is firing on fewer cylinders than we’ve become accustomed, too.

So, it’s no surprise, then, that when the market dynamics are a little flat, that we start to see more and more glossy brochures being produced to market a property that might look pretty on paper but is unlikely to be a sound investment.

Far too often, I’ve seen people who are generally quite savvy, fall for the glitz and glamour of a marketing campaign created solely to entice them to buy emotionally.

Perhaps the brochure helpfully outlines all of the “reasons” why they would love living there or it plays on their emotions about buying their “dream home”.

The truth of the matter is the only place for fancy property brochures should be in the bin!

Plus, there is no doubt that the cost of producing them will be clawed back in the purchase price as well.

Research, then research some more 

Now, we’re not saying that any property that has marketing material is a no-go, because it’s standard advertising practice.

The key is that a property has to stand up to much more scrutiny than just looking good on glossy paper.

That’s because property investment should have nothing to do with emotion and everything to do with extensive research and analysis.

Our independent Advisors analyse data from CoreLogic, SQM Research, Cordells as well as economic indicators from the Census and the Australian Bureau of Statistics to name just a few.

From undertaking high level research, our qualified property investment advisors can then make an informed decision about the locations that are most likely to produce the best future results for their clients.

Property investment professionals are highly-skilled at determining the best properties for their client’s individual investment goals.

Unfortunately, just like with the flashy brochures, too many buyers are swayed by sales pitches by agents who are actually working for the developer and not for them at all.

Clearly, that means that their opinion is not an unbiased one.

Property investment professionals, on the other hand, provide independent research and advice to their buyer clients.

At the end of the day, spending $500,000 and often more on a property is not something that should be done just because you’ve taken a fancy to how it looks on a piece of black glossy cardboard.

Every property in your portfolio should be selected because of its fundamentals and its potential for growth in the future.

Each one should move you towards achieving your ultimate financial goal.

It should never have anything to do with the colour of its letterbox.

https://www.linkedin.com/pulse/why-you-must-look-past-glossy-property-brochures-richard-crabb/

 

Richard Crabb | MD ASPIRE Network | PIPA Board Member
Author: Richard Crabb | MD ASPIRE Network | PIPA Board Member

QPIA® - Qualified Property Investment Advisor | Licensed Real Estate Agent - VIC: 082760L - SA: RLA 292544 - QLD: 3579879 |Diploma of Financial Planning |Active Property Investor | Board member of PIPA - Property Investment Professionals of Australia. Richard is the Founder and Managing Director of the ASPIRE Advisor Network. After an extensive career in corporate finance and through his personal investing experience, Richard identified the need to create a system and framework that supports ethical, independent property investment advisors who operate in the new property market. The ASPIRE Advisor Network now supports independent property advisors across Australia by providing their business engine and acquisition process, designed around concepts of future compliance in the brand new property sector. Richard together with the ASPIRE team has also developed a complete end to end software platform, which is leading the way to deliver property investment advice in the new property space. Our goal is to work with investors to implement their goals and objectives buying investment properties across Australia, utilising a structure and information-rich end to end experience.

Related Articles

How COVID has killed off ‘local investing’

How COVID has killed off ‘local investing’

If there’s been a silver lining among 2020’s challenges, it’s that humans have discovered a talent for adaption. It’s been all too easy to become entrenched in habits when we’re feeling safe in our environments. We choose to do things the way we’ve always done them,...

read more
Results of PIPA Annual Investor Sentiment Survey

Results of PIPA Annual Investor Sentiment Survey

CLICK TO DOWNLOAD THE RESULTS The results are in, showing that investors still seeing opportunities in the market across Australia. Certainly worth a read to get insight into what investors are thinking during 2020 The majority of property investors have remained...

read more