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Real
Estate and Investment
Top insights from global experts
BY ANGELIQUE RUZICKA
W e trust estate agents to advise on one of the biggest financial decisions of our lives . Whether you ’ re a property investor or not , you expect your realtor to know what ’ s best for your pocket . How has it become the norm , then , that many estate agents don ’ t have any in-depth knowledge of finance or investment ? Some agencies are leading a new age in realty .
International perspective
Globally , intensive estate agent training has become essential in getting the most out of agents and ultimately the best deal for buyers and sellers .
The Property Investment Professionals of Australia ( PIPA ) are lobbying for direct property to be classified as a financial product by the government . This means financial advisors would have to have adequate training to be authorised to give property investment advice . “ This would mean that licenced real estate agents would be banned from providing property investment advice , while buyers agents , mortgage brokers or accountants could only be authorised to give advice on the completion of a diploma ” says Ben Kingsley , chairperson of PIPA .
Brandon Turner , US author and real estate investor , says “ investors do not think like everyone else and this is where there ’ s often a disconnect . For example , an agent may tell an investor , ‘ This property is perfect for a large family , while most investors would rather hear , ‘ This house could produce $ 250 a month in passive cash flow .’”
Marcus Whewell , CEO of the UK ’ s Guild Property Professionals Association , says that in the next five years , “ individuals need to be better informed and qualified , meaning agencies should prioritise training and development .”
Playing catch-up
While laws and regulations differ between countries , leading South African estate agencies are well aware of the need for financial and investment training among their agents .
Mike Greeff , CEO of Greeff Properties recently launched a series of investment training sessions for his estate agents . “ The property game has become a lot more professional and sophisticated ,” says Greeff . “ Negotiation is vital in this business , and agents need to understand the different investment mindsets of a home owner in order to guide them into making the right decision . Buying a property isn ’ t just about picking a location and doing the paperwork . A thoroughly trained agent is able to provide a seller with valid and appropriate research and statistics which assist in making investment decisions pertaining to what is invariably a person ’ s most valuable asset . At Greeff we make ongoing training a priority to ensure that our agents remain up-to-the-minute and maintain their leading edge .”
Seeff and Pam Golding both have internal academies that provide their agents with the necessary qualifications to work as estate agents , and then continue to provide grounding in the skills they need on an ongoing basis .
Magnus de Wet , a director at Vista Wealth Management , says that the model for calculating the investment value potential of a property needs to include parameters such as initial investment value , interest rates , rental income and property value increase – all of which are influenced by multiple external factors .
SOURCES Seeff Propertis , Pam Golding , Vista Wealth Management ,
Greeff Properties ,
46 SEPTEMBER 2017 SA Real Estate Investor Magazine