20 Feb Who gives the best advice? – Bryan Loughnan
Everyone is an expert on property investment. Everyone has an opinion but there are some that don’t make sense and some that you are not quite sure about. Confused? Everyone has an opinion but who should you take notice of? We ask Bryan Loughnan and he has some strong opinions.
Kevin: Kickstarting your investment portfolio just takes one step – the first property – but sometimes getting to that point can be very frustrating, for a number of reasons. You might lose your nerve, you might be confused about the amount of information that’s being pumped out about what’s happening in the property market.
Interestingly, I had a chat with Simon Pressley from Propertyology in our regular video last Sunday, and we made the point then of just how frustrating it can be with the conflicting information. So, who do you rely on? Who do you talk to?
Bryan Loughnan also from Propertyology joins me to talk about this.
Good day, Bryan. How are you doing?
Bryan: Good, Kevin. How are you?
Kevin: I’m fantastic. It can be very frustrating, particularly for new investors. Everyone has an opinion, but who should we take notice of?
Bryan: Absolutely. It’s a common concern of many people who contact us, Kevin, particularly first-time investors. They spend a lot of time reading magazines, listening to podcasts, reading online forums – and there’s some fantastic information out there, but as I think you said, it’s almost an information overload.
What I think the most important thing for anyone to consider is to make sure that they’re comfortable. It doesn’t matter who they talk to, what opinion, what advice they get; they’re the ones who are spending money, they’re the ones who need to put their head on the pillow at the end of the day, and they need to feel comfortable with whatever decision they make.
Kevin: Simon is going to come back in a couple of weeks’ time and share with us what he thinks are some of those key indicators you should be taking notice of, but what are some of the warning signs that you might be talking to someone who’s not qualified?
Bryan: There are obviously lots of different levels of qualification in property, whether it be a university degree, whether it be your state legislation and state requirements. From a buyer’s agent’s perspective in particular, it might be more being a member of REBAA. But what you need to pay attention – for me, anyway, if I’m talking to people – is what are they trying to tell you, and more importantly, why are they trying to tell you that? So, trying to think about their motives. Do they have an ulterior motive? Are they making a certain recommendation for a particular reason?
And also, people sometimes like to – particularly with property – make predications when in actual fact, we don’t have a crystal ball. So, people who want to try to say that a certain market is going to perform at X.34% or something like that, when they’re getting very specific like that. Those sorts of things can be very concerning.
Kevin: What are the first steps for a new investor? What should they be doing?
Bryan: I think new investors need to spend some time with their household budget, making themselves comfortable with what they can spend, talking to a good broker, and ultimately building a team of professionals around them.
There’s not one person who’s going to be able to take them through the entire process, so having a good broker is important. We believe obviously from a buyer’s agent perspective, having someone to actually identify a location and find the right property and negotiate the lowest price is equally important.
But then once you own a property, you still need a team around you. There are really good property managers. Obviously through the process, a conveyancer, and tax depreciation schedules, accountants, the whole team of specialists.
Kevin: Let’s talk about that team, but I also want to talk about the important attitudes that someone needs to develop to be an investor. We know it’s about mindset, but what are some of the things we can do to shape our attitude, Bryan?
Bryan: I think as a property investor, Kevin, we need a long-term mindset. Property is a long-term asset. You can’t trade it on a day-to-day basis like you can with the share market or the bitcoins that are going around at the moment. We don’t track it on a day-to-day basis. So, as a mindset, you should be thinking long-term.
I often talk to clients as property investors thinking of themselves as business owners. Their business is going to be to provide accommodation to someone, a tenant, ultimately. So, thinking of yourself as “How do I get income?” It’s having a demand for a rental, but then it’s also about the expenses and the team around you. And obviously, a property manager will be an employee of yours.
So, it’s about building that mindset of the long-term nature of property as well as the business mindset rather than getting emotional about it.
Kevin: Yes, keep that emotion out of it and understand that it is a business. And if you’re getting attached to the property, then maybe you should step away from it and ask for other opinions.
Bryan, it’s been great talking to you. I’m looking forward to catching up with Simon in a couple of weeks’ time to get his input into this very important topic, as well. Bryan Loughnan is from Propertyology.
Thanks for your time, mate.
Bryan: Thanks, Kevin. Cheers.