I recently came across some “research” that left me both frowning and frustrated. A bank released a report claiming to pinpoint the “top 20” property investment locations. A closer look revealed that the data came from an urban development company, which raises questions about its impartiality.
Adding to the confusion, a news story uncritically echoed the bank’s claims, despite the findings contradicting the 2021 PIPA Annual Investor Sentiment Survey. This underscores a critical issue: the abundance of biased information online.
The Problem with Online Information
One of the biggest challenges today is navigating the sea of online information, much of which is produced with an agenda. It’s easy to find data that confirms preconceived notions, but this can be misleading, especially in property investment. Predictions about property prices vary wildly. Last year, major banks forecasted drastic price falls, which didn’t materialize. Now, they’re at it again, predicting future declines despite a robust economy.
The Impact of Misleading Forecasts
These reports often serve more to generate media buzz than to provide reliable advice. Unfortunately, many people act on these biased reports, mistaking them for independent, expert advice. The lack of accountability for inaccurate forecasts only exacerbates the issue.
Who Should You Trust?
I’m not here to endorse specific research houses or experts, but I urge you to seek advice from bona fide experts in property investment:
- Banks: Experts in finance but not necessarily in property investment fundamentals.
- Urban Developers: Knowledgeable about future housing supply locations.
- Housing Associations: Experts in construction and community planning.
- Real Estate Agents: Specialists in local real estate markets.
- Qualified Property Investment Advisers (QPIAs): Experts in identifying areas with strong economic fundamentals for long-term property investment.
- Property Investment Professionals of Australia (PIPA): The industry body for property investment professionals with a proven track record in market forecasting.
Proven Expertise
For instance, during the pandemic, PIPA accurately predicted that property prices would hold steady and then rise, based on historical trends following economic downturns. Their forecasts were not sensational but were based on solid research and economic fundamentals.
Conclusion
In the world of property investment, it’s crucial to discern between biased information and genuine expert advice. As your trusted mortgage broker, I’m committed to guiding you towards informed, reliable insights. Always ensure you consult with credible experts to make the best property investment decisions.
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