Junkies, Flunkies and Property Monkeys Part 1

“It’s unpredictable, the elements change on an almost daily basis and just when you think you have finally got to grips with the beast, it goes and throws a spanner in the works and leaves you back exactly where you first started.” - Julian Sonnessa

Historically the property market makes for an easy read:

Prices go up, prices go down, seasonal fluctuation continues as it has done so for decades gone by and everyone tries to make a little money whilst enjoying the ride.

Average UK House Price Graph

Most people, whether they are investors or home buyers will often start out by making money by mistake, by chance, just good old fashioned luck. The right purchase in the right area and at the right price will often lead to thousands of pounds of unexpected equity, which if you play your cards right could continue to multiply with very little work on your behalf.
Being completely honest, its not rocket science is it? Buying something, hold on to it and watch its value grow.
Being a little more honest, I know of plenty of ‘Property professionals’ who fell into the business whilst running other companies simply because there had been more easy cash to be made.

Now, these fortunate few have gone on to make a tidy living from marketing their success however are we in agrieance that we should heed their advice, verbatim? Do they really know as much as they lead us to believe? Could attending one of their Super seminars lead us to unbridled financial wealth simply by purchasing a small mid terrace property in Doncaster?

Quite simply, No.

Let’s all be quite clear, your property mentor/teacher/specialist is not your friend. Same with the seminar host and the smiling, friendly fellow on that new set of DVD’s you have just purchased.

Julian being interviewed at the Property Investor Show

Property Investment is a business, nothing more and nothing less. Everyone is in it to make money and the sooner you accept that, the better your business will become. I’ve come across loads of ‘newbie’ investors who have in one way or another attached themselves to one particular group, sometimes an investment club more often or not a networking event.

As religion is often described as the opiate of the masses, in the world of property investment the networking event or seminar circuit provides hundreds of people with the opportunity of meeting like minded individuals who are all there for the same reason.
The problem is the reason is generally wrong, way off line, far from what it should be and these attendees often become addicted to the pack and the whole point of being there, the real reason why they travelled so many miles on a cold, wintery evening is long forgotten.

Julian & Mario at a Berkshire Property Seminar

Seminar junkies and we all know one or two, people who will attend countless events costings hundreds of pounds only to spend the time socialising with other like minded individuals (the junkies) and doing very little else.
I know of one lady who has spent the past 5 years of her life attending property courses, seminars and literally any event with even the slightest relation to property investment. During this time she has spent in excess of £40,000 and even with all of the wealth and knowledge available at these events she has failed to secure one purchase.

This scenario is not uncommon. I know of other potential investors who have spent thousands of pounds on everything other than a deposit for a purchase and this trend will continue whilst potential investors are overloaded with information and given little guidance after they have paid their fees or finished their courses which leads them to search out more knowledge as they feel its the only way to move to the next level.

It’s the beginning of a vicious circle which many find themselves trapped in.

Here’s my advice (and it’s free by the way) If you are thinking of investing in property by all means do your research. The web, seminars, books, chatting to agents – there is a lot out there. But please, please don’t pay without asking why, if it is so easy, the host of the seminar is wasting his time talking to a room full of newbies instad of basking in their retirement!

Author: Julian Sonnessa