Home Truths - Seminar Savvy

For those toying with the idea of property investment, you might think it a good idea to go to a property investment seminar. But don't go to the first one you see an ad for. Do some research and make sure that the people behind the seminar have the expertise you need.

And be prepared to pay for that expertise. As Ashley Church, CEO of the Auckland Property Investors Association says, if a property conference is free, the co-ordinators are probably trying to sell you something.

Financial planner and property investor, Lisa Dudson, who runs seminars on property investment agrees. Some will charge $2000 for a weekend, she says, but if they are good, it will be worth the money.

Dudson does a 12 month property mentoring course for which she charges more than $5000. The APIA runs its own courses at around $300 for the day. Many courses are around $2000 a weekend. "I can save people that money," says Dudson, who makes no apologies for the fees.

She emphasises that conferences that property amateurs attend should be educational seminars, not marketing ones. "What are you trying to get out of it?" she asks.

One important question to find the answer to is how long the speakers at the conference have been in the sector. Have they seen more than one property cycle or have they just been in it for five minutes?

Another tip from Dudson is to make sure you don't go off immediately after an exhilarating seminar experience and buy. She advises investors that they then go and talk to their financial adviser, a property mentor or an accountant to see how the investment would fit into the rest of their financial strategy.

With certain seminars, you'll always get the best case scenario; it needs to be balanced, says Dudson. Her property investment seminars, for instance, point out the risks of property as an asset class, which the marketing seminars never will.

"The other key thing is, property is not a get rich quick scheme, it is a good, long term investment. You have got to get that into perspective," says Dudson. Just because there have been good returns the last four years does not mean you will be seeing the same double digit returns for the next four years.

Peter Aranyi, director of Empower Education, the training centre which runs a number of property investment seminars, says there are several places to check out the validity of the seminar organiser. One website, www.propertytalk.com is a good New Zealand forum where there is a lot of discussion about good and bad conferences. Consumer.org and www.nzherald.co.nz are also good places to check the names of the companies and individuals running the seminars. If it is a front for a developer, be wary, he says.

CONFERENCE KNOW-HOW:

1. Compile a list of questions before you attend the seminar and don't be afraid to ask them, no matter how small.

2. Avoid companies who apply hard sell/high pressure sales techniques.

3. Never make a decision to purchase, sign anything or hand over any money on the spot.

4. Avoid seminars specifically designed to sell you other seminars, charging high attendance fees.

5. Investment should be specifically tailored to your needs - so make sure you have a one-on-one consultation before you commit to anything.

6. Ask other industry professionals or colleagues if they have heard of the company promoting the seminar/workshop; make sure they're established.

7. Ask for copies of promotional material before and after attending the presentation.

Source: NZINVEST