IN the world of real estate, there is a group of people who identify themselves as masters of the art. They call themselves by many different names, like property guru, sifu, property coach, investment guru, etc.
Most of them do not possess the credentials required to be called an expert in their fields. To be recognised as a professional in any field, you need to have acquired the necessary academic qualifications in that industry, you would have had to work with an establishment for some time to gain the necessary experience, and, most importantly, you would be duly recognised by a statutory body that is tasked with the safekeeping of the industry.
It is the same no matter which profession you are in. Doctors, lawyers, architects, quantity surveyors, all of them subscribe to this similar model.
However, the same does not appear to be a necessity for these so-called “property experts”. Most of them neither have the credentials, academic qualifications in the industry nor the necessary work experience. They simply call themselves experts by keep shouting out the same thing over and over again, and, pretty soon, the general market accepts them as experts.
This group of people have caused serious damage to the industry in the last few years. During the residential boom of 2010 to 2013, many of these so-called experts emerged out of the woodwork and formed investment clubs. These clubs then encouraged their members to invest in so-called blue-chip properties.
Many potential investors were promised incredible returns when they flipped the properties upon completion. If they decided to hold on to their properties and instead chose to rent them out, they were shown potential rental returns that far surpassed their monthly installment repayments. Classes would be held where these unsuspecting and mostly gullible investors would be shown how to buy properties without any downpayment, how to spot below market value properties, etc.
Thousands of people have fallen victim to their powers of persuasion. Many have purchased properties that they neither needed nor could afford. And now that these thousands of units were completed, they were suddenly finding out that everything they have been told was hogwash. They are now stuck with properties that they are neither able to sell nor rent. Meanwhile, the monthly instalments continue.
When the market turned downwards, these multitudes of experts quickly disappeared for the most part. They suddenly become professional speakers, offering their services to developers and convention organisers. I have often wondered why some of these professional organisations would use people with questionable credentials to speak at their events.
Now that the market is showing some signs of stabilising, these so-called experts are beginning to come out of the woodwork again. And their first line of attack is usually on Facebook. You will read about how they visited a property showroom and in the blink of an eye, whipped out their credit card and made the downpayment for a unit in the development, thus successfully making their 40th property purchase.
They are constantly going on and on about how they are regularly researching the property market for hours each day, how they are always looking for the best deals, how often they have successfully found deals way below market rates, etc.
Have you ever wondered why the real property experts never posted anything on Facebook about their success or how many properties they bought before reaching the age of 30? Have you ever heard any of the prominent, registered, qualified and successful estate agents, valuers or consultants tell you on Facebook just how many properties they own, or how many “below market value” deals they have scored?
Can it then be that these dubious property experts are way more successful than the bone fide property consultants? If they really are that successful, why does their primary mode of income seem to be from conducting classes for a fee? According to them, it’s their way of giving back to the community.
I, for one, have never bought into this. I have always treated everything they say with large doses of salt, not just a pinch. I have learnt through many years of experience that if something looks too good to be true, it usually is.
So, to all property investors out there, be really careful who you trust to give you advice. Ask for their credentials. Tell them to prove whatever they claim they have achieved.
The next upswing in the property market will be coming soon. You can bet your bottom dollar that there will be numerous investment opportunities being offered by these so-called experts. Do your own research, trust no one, unless they have the proper credentials to back up whatever they say.
Happy hunting and may the force be with you.