Do you actually believe that by buying an investment property and getting into more debt will rid your home loan? Is this possible? Should that even be your “ULTIMATE” Goal, i.e. to rid your BAD debt? Ask yourself, do you have the time, knowledge or expertise to calculate what an investment would do for you on paper? Before answering this, let’s explore and expand on why we believe advice is required.
You may have heard these common phrases from blog writers, sales agents, property advisors and even friends or family:
- ONLY buy properties you can renovate
- Never buy house and land
- Only buy house and land
- Only buy 8 km’s from the CBD
- Never buy apartments
- ONLY buy apartments
So how do you know what is right and what is not?
Well, probably all the things you hear are right but the real crux of the matter is what’s important for your situation. What is going to get you to where you want to be? Understand your situation, your end goals, commit to them and start planning on how to get there!
In order to plan your goals, you need to have a full understanding of all the rules, regulations, safety nets, insurances, taxes, financial structures, building processes, property market and the list goes on. Just one omission could alter your outcome and you might not gain the best from your investment and your goals may never become a reality.
Now I hear you say, “Property Investing is not that difficult, I can do it myself”.
You find a house that you like, apply for the finance and BOOM, you’re a property investor, right? Well for some this can work but I'm sure most of us would like to have a bit more insight when hundreds of thousands of dollars are involved.
That’s where having an expert property and finance advisor to coach, mentor and assist in the process can be of benefit. They have been there and done that, not just once but thousands of times and obviously know a lot more than someone just starting out. Why do you think great sportsmen and woman have coaches? Their role can vary from:
- Knowledge base and this list can go on and on…
Basically their role is to create the right conditions for becoming a better sports person, for learning, motivating and keeping them accountable. Why wouldn't you take on a property investment advisor to be that ‘coach’, that mentor and that advisor for you?
Property Investment is a Business.
Like running any business, you need to spend a good amount of time and energy on ensuring it is working for you. The property you purchase must get you to your end goal; whether it be to build future wealth with a retirement plan and strategy in place or paying off your bad debt; i.e. Your home loan.
You need to design an investment plan. Know what costs are involved, ensure you have the right structures in place, have a rough vision of what the monetary results would be if you proceed and know how you will get there. Jumping in the deep end without a plan can be a costly mistake for anyone.
Outsourcing - sometimes it’s better to leave things to the experts
Here is another reason you may want to see a property expert and a property investment company - you may be time poor, you may not want the stress of managing and taking care of any issues that may arise with finance, or settlement or while construction goes up (if you’re purchasing a new property).
Let’s not forget we need to ensure that your house is protected, let’s face it every investment has risk – do you know how to minimise that risk and keep your own house safe should hard times hit?
In summary, these are our top 4 reasons to use a property investment advisor:
How to Select a Property Investment Advisor
Property Investment advisors can give you that expert advice, extensive property analysis reports and show you how to invest in property the “right” way i.e. utilising the correct structures.
There is plenty of good and unfortunately bad advisors offering these services, if you’re unsure or just not comfortable with the one you have chosen, look for another. There is no need to progress; if your gut is telling you to run then you should probably listen to it.
Here's a few tips for choosing the right one for you:
- Enquire if the company offers six month health checks to ensure everything is on track after you purchase. Without this, it’s easy to lose sight of your goals and head in the wrong direction; it will also give you peace of mind that the company isn't afraid to stick around after you've made your initial purchase
- Ask for testimonials or if the company can put you in touch with past clients
- Ask your family and friends if they have used an investment advisory service; word of mouth recommendations are always the best
- Google the company and find out as much as you can about them. Do they have a website, Facebook page and are they active on-line. You may even be lucky enough to find reviews on pages like Facebook, Google+ and Yellow Pages
- Do they have a local street address and contact number. A lot of advisors come to your house so you would never know if they have an office. Take time out to visit them at least once to ensure the business is what they say they are and there is somewhere you can go if you need to contact them urgently
- Ensure they are a registered business on the ASIC website
Now you've made it to the end of our blog on all the reasons why you should use an expert, why wouldn't you spend an hour with us just in case? Book in for your free health check today.
*This article is for general information purposes only. It is not intended as financial or investment advice and should not be construed or relied on as such. Before making any commitment of a financial nature you should seek advice from a qualified and registered financial or investment adviser.
PEB Group is a complete property advisory service for Perth families. Offices are located in Inglewood and Willetton, Perth, Western Australia and offer service in - Financial Planning · Finance Broking · Property Management · Property Sales · Property Investment · Development
PEB Real Estate - Licensee PEB Real Estate Pty Ltd. Trading as PEB Real Estate ABN 33 604 199 617. Triennial Number RA70508
PEB Financial Planning - Howarth (WA) Pty Ltd ARN 433328 trading as PEB Financial Planning is a Corporate Authorised Representative of NEO Financial Solutions Pty Ltd. AFSL 385845 | ABN 64 141 607 098
Fungroup Enterprise Pty Ltd | ABN 50 104 943 412 | Australian Credit Licence 389510 | trading as PEB Finance | ABN 50 104 943 142 | Australian Credit Licence 389510