In Episode 34 of the Property Investing Journey series, Mike teams up with Narelle Glynn, Buyer’s Advocate and Agent and founder of HUNTER Advocates based in Melbourne. Today’s conversation focusses on the common pitfalls that investors make when investing in residential real estate and how to avoid them.
A self-described data geek, Narelle is well qualified to talk about the risks encountered in the property sector. Having studied law and commerce at university, Narelle went on to qualify as a Chartered Accountant and work for one of the Big 4 accounting firms in audit, focusing on financial services. She has been involved in major real estate transactions and has seen first-hand the methodology undertaken by the major banks in assessing their loan books.
As a certified coach and with experience in strategic Human Resources, Narelle calls on her understanding of what makes people tick to help guide her clients through the decision making process. As she discusses with Mike, there are a myriad of pitfalls that the less experienced investor might fall into and it’s her job to ensure that her clients have all the knowledge they need to avoid costly mistakes.
From underestimating the cashflow requirements to not doing enough due diligence, Narelle has seen it all. She shares her experience with Mike in this compelling conversation that might just make your next property purchase a little bit more seamless.
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Mike teams up with Narelle Glynn, Buyer’s Advocate and Agent and founder of HUNTER Advocates based in Melbourne. Today’s conversation focusses on the common pitfalls that investors make when investing in residential real estate and how to avoid them.
What we cover in this episode
- Narelle shares her background in financial services and the major banks
- Credit risk from a lender perspective
- Looking at the net cashflow
- Understanding the investment time horizon
- Using the data to avoid the proximity trap
- Why the smart money is most likely in outsourcing property management
- Narelle’s top tips for investors to avoid the common pitfalls
“A big missing piece of the puzzle is all the other outgoings that come along with owning and holding a property, things like insurance and maintenance.“ Narelle 7:34
“Time horizon is a really big one, Mike, actually. You know you talked about retirement and nest egg, but a lot of people don’t think about other life milestones, that making smart investment choices a bit earlier in life can actually finance.“ Narelle 10:55
“It’s not just all about one day I’m going to be old and I’m going to need money, there’s a lot that you can actually do with investing, it’s not just about not being in a nursing home when you’re in your nineties.“ Mike
“Data can be the cause of a lot of analysis paralysis. It can be really hard to know how to interpret and use data to your best advantage but I always start with the data and principles of supply and demand“ Narelle 13:30
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