Amongst my clients, and within Australian culture, property investment is a very popular way to create and build wealth. It’s often easier to trust and understand bricks and mortar than numbers and trends on a share certificate, isn’t it?
But there are some tricks, tips and rules to investing that can turn a good investment into a great investment.
Here are my five top reasons why you need professional advice before you invest:
- You’re not a tax expert (unless this is your profession). Tax laws change and it’s important that you gain maximum tax benefits from your investment to fully capitalise on it. If you don’t have an excellent accountant or tax expert, get one BEFORE you invest.
- You’re not a property expert (unless this is your profession). Whilst you may know a lot about property, it’s different to working in the industry day in and day out. When you learn about something for personal interest, you tend to focus on what’s relevant to you, which means you could be blinkered to other possibilities and opportunities. Speak to or engage an expert so that you go in with all the information possible.
- You’re not a finance expert (unless you are…). Investment lending has changed dramatically in the past 12-18 months. Lenders have tightened the reins and are making it harder for people to borrow for investing purposes. Interest rates are higher and restrictions are greater. A lending expert will help you navigate through the options and present you in the best possible light to the lender that best matches your needs and situation. They’ll also do all the legwork, running around, following up and chasing, leaving you free to get on with life.
- What’s your investing strategy? Do you have a goal or a time frame or a process for investing? Talking to a financial planner will help you get a clear strategy for investing and get you thinking about how, why, what and when. As with most things in life, going in without a strategy or plan is never ideal, so do some homework, talk to us and we can help you get your strategy down.
- Make sure your head rules your heart. Whilst it’s great to love the investment property you buy, it’s the cold hard facts of the investment that will be funding your retirement. When you’re buying a home, it’s good to get your heart involved in the decision-making process, but with an investment property, the head needs to rule. Getting advice from a property/finance professional will make sure that you’re focusing on the numbers – the returns, the risks, the cashflow.
Investing in property is a great thing to do. Accessing professional advice to educate, support and advise you along the way is the smart way to invest.
We have a team of trusted professionals that we’re more than happy to refer you to, so if you need to build your team, please get in touch.