How Can We Do More as a Property Investment Advisor?
The Covid-19 pandemic has proven itself to be a crisis like no other. Economically, it remains difficult to fully understand the impact of this disease in the future -because the scale of this disease is unprecedented in the modern world. And with it comes a great deal of anxiety to everyone, especially investors. As a property investment advisor, financial advisers, accountants, and mortgage brokers, we have the responsibility to take care of clients, especially in a time like this. So, what can we do as professionals to help our clients during this time?
Currently, the plans being implemented here in the State of Victoria when it comes to physical distancing is still very much firm as to compare to the other states. Though we can see a relaxation when it comes to the restrictions announced by the federal government, things are still pretty limited. But these restrictions would be more than enough for you to check in on your clients, and maybe even invite them over for coffee.
Ask your clients how they are and how they are coping during these terrifying times. Both personally and professionally. What with the ongoing turmoil we are all experiencing, this is the time for you to show your clients that you are here for them and that you care.
Extending Our Services
The statistics say that 50% of the Australian population lives paycheck to paycheck. This means that in this global pandemic, half of our population will mostly be affected and get hurt. We have already seen the rise of unemployment as this crisis unfolds more and more.
We’ve seen quite a jump in the number of unemployment in recent months. And there is also a rising level of concern that Australians who were left unemployed during this pandemic will not work again.
This being the case, how can we, as a property investment advisor, extend our services more to our clients apart from providing property investment services in Melbourne?
Now is the time of understanding and compassion. Our clients would likely have a ton of questions, and it is crucial to answer them to the best of our abilities. No one knows the local market better than we do. So, let your clients know that you are doing everything that you can to protect them and their investments.
Be upfront about their portfolios
According to Andre Leukshoff, President of Broad Reach Communications in Toronto, “Don’t sugar-coat that the market has lost value. Let them know that at some point things may stabilize, but they may fall again. The more they hear from their adviser upfront, the sooner they can start to deal with the realities of the situation.”
As difficult as it may be, it is always better, to be honest about facts rather than to gloss over them. Clean information is very vital in a time like this. Our clients deserve to know the truth and will much appreciate it.
Be a Mentor
Here in Logic Property Group, we have talked about how every downturn would always be a real opportunity. As your property investment advisor, we have to make sure that we communicate every possible opportunity our clients could have during this time.
Let them know all positives amidst the turmoil that this pandemic has since created—one being that the rental industry will continue. People would still need shelter, no matter how uncertain these times are. And that passive income from their property will help them under these financial pressures.
If they are relatively new to property investments, let them know of the opportunities of entering the real estate market, and teach them the pros and cons of doing such. One example would be the reduced prices in the market, with everyone opting to rent rather than buy, making the prices relatively more competitive.
This is an excellent time to impart to them our knowledge and expertise when it comes to property investments. A great example of which -and I think we can all concur to this- is what Sir John Templeton once said, “The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.”
Not everyone would be as confident as some. There would always be people who would be worried about investing during a downturn and would rather wait and see on the market. Do not force them to think otherwise.
It is essential to prepare for unpleasant conversations during these times. There are many factors to consider that contribute to clients’ decisions.
This is a difficult time for everyone, and everyone reacts differently. What’s important is that we listen to our clients’ concerns as advisors and answer them as directly and as knowledgeable as we can even if that means that they would still rather wait on the market.
Preparing for the Next Uncertainty
This pandemic will not be the last health crisis that would affect the world -and definitely will not be the last downturn we will see happen in the market. This is a fact, and it’s inevitable. If history shows anything, we have been through several: wars, pandemics, natural disasters. But like all these disasters, this too shall pass.
We should all remember and fully expect that there will be more downturns and corrections in the future. In the New York Times bestselling book “The Laws of Wealth – Psychology and the Secret to Investing Success, Dr. Daniel Crosby says, “Although the media talks about 10% to 20% market losses as though they are the end of the world, they arrive as regularly as spring flowers and have not negated the tendency of markets to compound wealth over long periods dramatically.”
With that in mind, we, as mentors, should encourage our investors not to be frightened of market downturns but instead to embrace it. This is something we encourage our clients here in Logic Property Group to do.
There is no better time to prepare our clients for their future, especially for the next downturn. Educate and encourage your new investors about the local real estate market and help them to create a property investment strategy for the long term. Reassess and advise your current investors on how they can build their portfolios and help them manage their way through the market.
During these unprecedented times, we as professionals should team up and stick together to help more people. Here at Logic Property Group, we work with a large number of partners that could answer and coach you through your property investments in Melbourne. We believe that having a financial adviser, whether there’s a downturn or not in the market, would always prove to be useful.
We have been able to help more professionals grow their business and, more importantly, add value to their clients. We are here to help you achieve your financial objectives and plan appropriately through all of life’s unforeseen events.
We would love to get in touch with our team and help you gain more knowledge and help you assist your clients during this time. Together as a community, we will all get through this better and stronger. Call us at 1300-LOGICG (564424) or send us a message now.
The information on this post/video is of a general nature. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions.