Home Buy Australian Property Investments Real Estate Companies: Should You Trust Them?

Real Estate Companies: Should You Trust Them?

by David Pascoe

There are thousands of real estate companies all over Australia. These types of companies can range from mom and pop shops that consist of a couple of property managers or they can be a large brokerage with thousands of employees and affiliates. However, many people question if they can (or should) trust the people providing these services. Can you place your full trust in your agent? Can you assume that a property manager will do the right thing?

When looking at investment properties, the element of trust is essential. You’re going to be making a substantial purchase – typically on the order of $500,000 or more – and you need to know that the decision you are making is sensible. Everyone will be willing to sell you a home and earn some commission, but you need to see if it’s the right home for you.

Unfortunately, the real estate landscape is fraught with spruikers. Here are three characteristics of bad companies.

High-Pressure Seminars From Real Estate Companies

Many property investment spruikers go around the country pitching seminars in which you can go to learn about investing in real estate. The problem is that many of these seminars are not for educational purposes only. Instead, the goal of these real estate companies is to sell you an investment property right there. Now. Sign on the dotted line and get rich.

The problem is that most of these investments are bad. That’s why there’s so much pressure to sign immediately and so many outlandish claims. Avoid these spruikers at all cost!

Limited Access To Developers And Builders

Some real estate companies focused on property investments have a minimal selection of homes from a small list of builders. They’ll market these homes aggressively, but they’re bad investments. 

Instead, the better organisations have access to bountiful inventory in all five states. That way, you’ll be able to pick the right investment home for your particular financial needs.


Some of these organisations will offer “rent guarantees” which will make you feel like you’re getting a good deal (after all, at least you can count on income from your investment). However, these guarantees – like most other types of warranties – are priced into the cost of the purchase. Instead of paying $400,000 for a home, you’ll pay $450,000, but they will “guarantee” your rent of $2,000 for two years. If you find no renters, they pay you $48,000 of the extra $50k you gave them. But if you do rent the property out, then they keep the whole premium. 

Those guarantees are not a loss for the company. You’re just paying an incredibly steep price for them!

Bottom Line

You can trust real estate companies, but you need to know the sales tactics of this industry to know which ones you can and cannot believe. The above tactics are red flags, and you should avoid companies that engage in those!

The above list is not comprehensive by any means. If you’d like to learn more, please visit Buy Australian Properties’ warnings on real estate companies. That page lists every dirty tactic that some organisations will use on unsuspecting buyers!

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