Sun, Sea & Dreams....

……and so the story goes…. 

…..or does it?

True, some people have made some serious money from property. They are at the very top of their game, know what they are doing and have worked for it. However, it is very unlikely that they made millions in a few months from nothing. 

Unfortunately, there are many so called ‘mentors’, ‘gurus’ or ‘property experts' out there telling people that they can achieve such a lifestyle with nothing more than a couple of quid and some inside knowledge.

Come to our free property seminar they shout, it’s endorsed by a wealthy celebrity they proclaim, he’s made millions and he’ll show you how. No obligation, it’s free and so is the lunch.

A free lunch now that is unusual. All this is for nothing, surely there’s a catch? Nope, they assure you, no catches just the chance to learn from the best because we are really nice guys that want you to be rich like us. Oh, there might be the option to sign up for a course but that’s completely your choice and, yes, you may have to sign up to our contact programme but why wouldn’t you?

Property, the easiest game in town. All you need to know is how to gamble with other peoples’ money, how to reinvest your profit and buy below market value. If you can learn how to do this then surely riches are guaranteed and you can achieve the financial freedom you deserve. For a small fortune, unqualified smooth talking salespeople masquerading as property experts will train you to be as rich as you want to be with the only barrier to success being you. Easy, right?

Each weekday morning there is a brilliant TV programme on the BBC where amateur property investors go to the auction, buy a property for a knock-down price, give it a light refurbishment and make thousands of pounds profit almost every time. Whooosh….from a dump no-one wanted to a palace fit for a king in just 8 minutes of TV time. Swooning estate agents declaring that the house is amazing and declaring a massive uplift in value as they stroke the egos of the successful investors. This can be you, surely?

Then there are the YouTubers. These guys are phenomenal. They live in huge mansions, drive new Aston Martins and sexy red Ferraris. Their property portfolios are worth millions. They are self-made property millionaires who left school with nothing but their blazers and yet they have built fortunes with no money of their own. Who needs a formal property qualification when you can learn from these guys? 

So, roll up, roll up and enjoy the fun of the fair. Play the property game, guaranteed win every time. Look, I’ll show you how to play! What do you mean, loaded dice, dodgy darts and fake winners? That’s because you’re not playing right, pay me a bit more and I’ll show you how to win big!

Does any of this sound familiar?

If it does, then good. If not, then please be aware!

Property investing can be a profitable business and lead to a good long-term outcome if it’s done carefully, with full knowledge of the facts and an approach that consistently assesses risk versus reward in line with your realistic goals and pragmatic approach.

Yes, there have been some people somewhere who have done very well ‘flipping’ property but this is extremely rare and is often combined with other factors besides the single property deal. 

In reality, property investing is a medium to long-term thing. Property is a very illiquid asset (i.e. cannot be turned into cash upon demand), with significant costs attached and often bound by tight regulation. For every bargain there will be at least 10 dogs that you would be well advised to walk away from. The ability to distinguish from the two is key to successful property investing.

Due to the large amounts of money involved property attracts the charlatans. These are those that are there to part you from as much money as they possibly can through dubious promises, back-hander deals, worthless misinformed training, poorly drafted one-sided agreements and dodgy joint venture deals to name just a few.

If you are serious about becoming a property investor then stop listening to the hype. It’s there to create a noise around the fact that property investing is actually quite a difficult route to financial freedom. It can be done, of course, but you must tread carefully to avoid getting your feet burnt.

If you want to learn and become successful then make sure you are learning from those who really are qualified to teach you. It takes at least three years at University, two years on the job experience and an Assessment of Professional Competence to become a Chartered Surveyor, a similar type of system applies to lawyers and accountants. These people are required to keep up their CPD (Continuing Professional Development) with a certain amount of on-going formal training each year so that they can keep working as professional advisors.

Beware, be very aware, of those who advocate Get Rich Quick property schemes when they have no recognised property qualifications. They may be driving smart cars with villas in Dubai and Colgate smiles but it’s almost certainly not been achieved in a year from their property investments. Just think how they got their money and then think again whether you really want to give them your hard earned cash?