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Reading Time:

2 minutes

Published:

07 April 2004

Risky Investment Decisions

Don’t break these two rules.

I have dealt with a Financial Services company for a few years now. They have a Financial Planning arm, a Real Estate arm and a Mortgage Broker arm.

They have done a good job for me over the years helping me invest in shares and super. I am about to buy a property now through them. They have done a very good job in providing detailed reports for me with cash flow projections incl. yield and capital growth.

They have even provided me with the Residex reports on the area. I knew about the Residex reports before and so felt comfortable when they showed this report.

I was a little worried when they offered to put me in contact with a solicitor. After I met this solicitor, I was actually very impressed and decided to use him.

The only thing I am asking is whether I should get my own personal independent valuation? If so, when do I get this?

The unit will be finished in a few months and I am now in the process of finalising a loan through a bank.

Thanks for your help.

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RESPONSE
You must ALWAYS get an independent valuation BEFORE you commit to buying any investment property. A few hundred dollars spent on a valuation is probably the best (and certainly the wisest) investment any property investor can make.You have already broken the first rule (always use an INDEPENDENT lawyer), so make sure you follow this second rule.

If you break both these rules you are placing yourself in grave danger.

I hope this helps (or even saves) you.

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If you wish to send a question or comment to Neil Jenman you are most welcome. Neil tries to read every e-mail and respond personally. We have posted some of the common questions together with those we feel may help you. Thank you for your interest.
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