Beware of Expert Opinion from Promoters.

Lately we have been witnessing a resurfacing of property promoters in the press after a long period of silence. We want to reassert our advice that people should do their own homework before embarking on a large asset purchase be it property or otherwise.

How can you tell if it makes sense to buy a property? Our suggestion, as a financial firm, is that you talk to a financial adviser, you determine your own circumstances, you look at your own unique situation, and that you don’t base your opinion on what you hear on the radio or TV from people in the property business. The people who are restarting to champion property now are doing so under the banner that ‘it is cheap to buy’, part of the ‘cheap’ is due to exceptionally low interest rates, which invariably will go up some day.

That is not to say ‘don’t buy property‘, far from it, what we are trying to tell people is ‘make prudent decisions’, don’t buy any asset you can’t afford and most importantly, ensure that you are buying to meet ‘needs’ before ‘wants’. If you are considering a property purchase then do so on your own terms.

Obviously we don’t believe that you’ll hear an interview on radio and run to the nearest estate agent with a deposit, but there are many consumers who pay close heed to what they hear on the TV/radio or read in the press and at times it is hard to distinguish the difference between those giving genuine advice and those furthering their own cause. As a rule, if a person works for a property oriented company then they have an interest in promoting it, it is important that you distinguish between the two.

Get a financial adviser, ideally they will have their QFA exams, it that person is a broker make sure they are regulated and a member of a professional trade organisation such as PIBA or IBA, you can also talk to an accountant, tax adviser, or other finance related professional. Take the time discuss your ideas with them, and listen to their advice, having a ‘money professional’ in your life is the same as having a GP for when you feel sick, when you feel like buying a financial product or investing in something go and book an appointment with your financial adviser, whoever that may be.

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