MARKETS
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