Some key people to consider are accountants, conveyancers, brokers and financial planners. They all help in different areas, however are equally important in helping your achieve your dreams of owning and investing in property!
If you pick the wrong person to manage your finances, you could end up paying too much, be given advice that goes against your overall goal, and in the worst case scenario, you might even end up paying MORE tax down the line.
When looking for an accountant, don’t limit yourself to local options only. Being able to sit down and meet with an accountant isn’t as essential as you might think. You should pick someone based on their skills and experience, not due to their location.
When it comes to price, there’s a fine line between getting a good deal and getting low quality services because you’re not willing to pay for someone better. If you want someone quality, you have to be prepared to pay for their time and expertise!
If you’re a first-time investor looking for an accountant, one of the most efficient ways of finding someone quality is to ask other successful investors who they use and if they would recommend them.
Also – Accountants get busy fast, and the really good ones are so popular they stop taking on new clients altogether. Now is the best time to find an accountant, to prepare you for your investment!
Choosing the right conveyancer is a really important part of the property investment journey! Before you commit to anyone, it’s important to do your homework. The easiest way to do this is by jumping on the internet and doing some research. Find out who the best rated ones are in your area – read reviews, check their experience and arrange a meeting to see if you’re on the same wavelength.
You can also ask friends and family to give you recommendations of who they have used in the past and if they are happy with their services. Always look for REAL, positive testimonials from people who have used their services before.
While your Accountant might not need to be local, I definitely recommend finding a local Conveyancer. They are likely to know much more about the area than someone at a national firm, including planned developments in the area which have not yet been the subject of a formal planning application.
Once you find the right Conveyancer, ensure the process runs smoothly for you both. Make it clear to them how and when you want to be contacted. If you want to hear once a week/every other day, you need to know they can meet these requirements. They should be able to guarantee your calls will be returned the same day.
When it comes to financing your investment property, one of the key people on your team will be your mortgage broker. Your broker will act as the middle-man between you and the lenders. They’ll have access to a range of products through the panel of lenders they are accredited with and their main goal should be finding you the most suitable deal for your circumstances.
There are a lot of brokers out there, which mean they’re all trying their best to sway you to use them. You need to look past clever marketing techniques and figure out who really knows their stuff. Information such as how long they have been in the industry, which lenders are on their panel and the types of loans they offer will help you make a decision that best suits your circumstances.
If you’re not sure, ask your broker which products they will be comparing and from which lenders. Ideally, they will have a mix of both traditional lenders, such as banks, building societies and credit unions, as well as non-traditional lenders. Asking for a comparison rate table of the different home loans you’re considering will help you see for yourself which loan works best for you financially. You should also ask for a loan product factsheet so you have in writing what the broker has offered for you.
I recommend looking for a broker that has several years experience in the mortgage industry and is properly qualified. Ask to read their testimonials from previous clients, or if possible, speak to them directly so you can see what their relationship is with their clients.
Your financial planner is another essential member of your support team, so it’s important you find one who understands your circumstances and can help you successfully.
To increase your chances of getting advice that is right for you, look for an adviser who has a diploma, an advanced diploma or degree qualification in a relevant discipline such as finance, economics, accounting or financial planning. Also check that the adviser is a member of an industry association and/or a professional body. Most associations require members to participate in ongoing training, have a code of conduct for members to follow and a mechanism for handling complaints.
It’s also a good idea to enquire about who their typical client is. For example, are the adviser’s other clients planning for retirement or are they young families wanting to save for their children’s education? You want to make sure they are regularly working with others in your same situation so they can provide you with relevant advice.
When you speak with an adviser, make sure they focus on the services and strategies they can offer you, rather than the products they can sell you. Be careful of advisers who only sell one investment product or solution as this may mean the advice doesn’t meet your specific needs and objectives.
Remember that it’s okay to shop around to find the right people to support your journey. The most important thing is that they understand your circumstances and goals, and have a proactive approach to helping you reach them.
Until next time,
* This article was first published on The Property Investor – http://www.tpimag.com/list-maker/your-team-your-support/