Property investing for the first time can seem like a big leap into the unknown. There are so many options open to investors today, and knowing which way to go, what to invest in, as well as what should be avoided seems like an impossible decision to make. With no experience, the big leap into real estate investing can seem risky, however, with the right knowledge and support behind you it really isn’t as hard as it may seem at first.
Hamish Ferguson is a mortgage broker and financial planner with Vision Property & Finance, based in Newcastle. He has first-hand experience dealing with clients who are investing in real estate for the very first time and is familiar with their concerns and their dreams and hopes as they begin their property investing journey. From the start, says Hamish, it’s important to know peoples’ situation and the point from which they are starting their journey.
Starting out as a first time investor with no experience
“Initially, what we try to work out is whether the client is coming to us and saying, ‘I want to invest but I don’t know what to do’, or whether they are a little further along and they’re saying, ‘I know I want to invest and what I’d like to invest in but I don’t know what to do next’.”
“Ultimately, what you are trying to figure out is whether clients have got the desire and need to do something about their futures. Some people may feel they don’t have a need because they haven’t thought too much about what their future looks like. Sometimes, if they are in a bit of denial about this, you need to be able to show them what their future might look like and ask the question, ‘Are you happy with what that looks like?’ because If people can’t see a reason to do something they won’t want to change.”
How soon should people start to do something about investing?
Hamish deals with people from all walks of life, however, if there is one recommendation he has for people it is to start to take control of your financial future as soon as you can.
“It is always recommended to start thinking about and planning your financial future as early as possible. We tend to find people in their mid-to-late 30’s will start to ask questions about what their future looks like. When we get to this point in our life we ask ourselves, ‘Well, I am at the half-way mark now, what does the future look like?’ and this can be the catalyst for wanting to change things and create a better future.”
What do you do when you don’t know what your financial future looks like?
Not everyone Hamish sees starts at the same point. He says some people can be quite specific about what they want as a first time investor, however, it is more common to see people who at first don’t know – or don’t know enough – about what their financial future looks like. It is a situation that, as an advisor, Hamish likes to help people work through so they have a clearer picture.
“Firstly, when people initially come to see us, we try to get a snapshot of their current situation. We will try and found out some essential details of their financial lives: whether or not they have a home loan (and what their outstanding home loan balance is); how much they have in superannuation; and, whether or not they have any investments.”
To find out what else first time investors need to know…look out for Part 2 of this article in the coming weeks
Are you considering investing in property? Want all the answers now?
Behind every great investor is a great team. Give Vision Property & Finance a call on 1800 004 663 or contact us to get the best team supporting you. Or read more on how we can help you with your Property Investment journey here.