Investors should ask their consultants several key questions to ensure they're making informed decisions and working with a reputable professional. Here are some essential questions to consider:
1. Are you licensed to give financial advice?
It's crucial to verify the consultant's credentials and licensing information to ensure they're qualified to offer investment advice.
2. What type of property investment do you specialise in?
Understanding the consultant's area of expertise helps determine if they're the right fit for your investment goals.
3. Are you a property investor yourself?
A consultant with hands-on experience in property investing can provide more practical and valuable advice.
4. How much support will I receive from you?
Clarify the extent of the consultant's support, including advice on property types, investment strategy formulation, and ongoing communication.
5. What are the expected returns on the investment property?
Discuss long-term investment projections, including predicted capital growth, projected rental yield, and overall market projections.
6. What is the total cost of the property investment?
Ask about all associated costs, including deposit amounts, reservation fees, service charges, ground rent, and management fees.
7. Do you have an exit strategy for the investment?
Understanding potential exit options is important for long-term planning and risk management.
8. How do you source your deals?
This provides insight into the range and quality of investment opportunities the consultant can access.
9. Do you have a network of professionals such as solicitors and mortgage brokers?
A strong professional network indicates comprehensive support throughout the investment process.
10. What post-sourcing support do you provide?
- Inquire about assistance with financing, legal processes, or property management after the initial investment.
BONUS: How do you structure your fees?
- Clarify the fee structure, including whether charges are upfront or upon completion, and any additional costs.
By asking these questions you can better assess your consultant's expertise, align their services with your investment goals, and make more informed decisions in the complex property market.