What value do you place on education? It would seem that education in the property sector is priced at several thousand ‘pennies’ – is it worth it?
I sat with a client recently to review their Strategy. Normally we look at this first, however with this particular client they came to us based on an opportunity that is allowing them to build ‘below valuation’. It’s always interesting to hear the journey people take when property investing and for this couple it is a common story with lessons for all of us.
Theirs is one of ‘running out of time’. With 10 years left of work they understand that their Super wont be enough to support their modest lifestyle. With an understanding that property is ‘just easier’ than other asset classes they set about gaining the education they needed to grow their portfolio to release them into a worry free retirement. It soon became apparent to this couple that most ‘educators’ were saying pretty much the same thing and struggled to come to the terms with the fees charged (whether as an ‘upfront fee’ or as a percentage of a property purchase, etc). So they set about building their portfolio.
To their credit it was a sound plan and the initial steps had them on track to achieve their 5 year goals. While there is much they still don’t know, we are now working with them on the journey from just ‘investing in property’ to understanding the ‘business of property investing’. We’re teaching them how the overall portfolio ‘works’ and getting them some good accounting advice to ensure they take into account the areas that the previous ‘educators’ failed to mention (implications of gearing on Capital Gains Tax, diminishing effect of negative gearing, GST implications if sold within a certain timeframe, benefits of correct structures, etc) plus looking in detail at the type of property, location based on research not the ‘educators’ stock availability, and much more.
This couple are now on track to achieve their 5 year goal in just two years and their retirement just might come sooner and be more comfortable than they had imagined. By the way, what the other ‘educators’ were offering for thousands of dollars, we provide for free. Why, because property investing is a journey, not an event and we want to partner on that journey with them. We agree on the ‘value’ of education, just not the ‘cost’ placed on it by some.
For them, our services are free and they were able to access a property through us that fits their Strategy that came in below valuation: and we do all the work! Now that’s value for money – maybe we can help you too?