In last month’s edition of Peninsula Living, we discussed the fourth step to successful property investment – risk management. We outlined how to minimise risk while still optimising returns.
This month, we take a look at professional property advice.
Property is one of the largest investments Australians will make in their lifetime. Yet many do not seek professional advice.
Whether an investor or owner-occupier, buying the right property in the right area will help you springboard into other investment opportunities… though only if managed correctly from the start.
There are many professional service providers that can help you along your journey to general wealth creation and protection. These include financial planners, accountants and solicitors. The service providers specific to property investment are:
Below, we outline what each does and discuss how to get the best out of your professional adviser.
A property investment adviser (or planner or strategist) provides professional property investment planning, strategies, risk management advice and market research to help investors achieve higher returns - and lower risk – specific to property.
A good property investment strategist will work with your financial planner and other advisers to ensure your property investment strategy is integrated and in synergy with your complete financial plan, risk profile and situation. They will apply sound investment principles to well-informed industry advice, education, market research and planning.
This will ensure you make best use of your borrowing capacity, equity, cash flow and savings invested. It also ensures a better chance of selecting quality investment properties in areas showing strong potential for capital growth and rental yield.
As all property investment advisers are different, be sure to ask them their qualifications, experience, investment approach and what fundamentals and research they consider when providing advice.
Many offer a free or cheap initial consultation. Take it, meet them and find out how they can help you achieve greater returns on your investment.
A buyer’s agent (or buyer’s advocate) is a professional who works exclusively for the buyer, not the seller. They specialise in finding and negotiating the purchase of property on behalf of the buyer.
Some buyer’s agents specialise in sourcing owner-occupied property while others specialise in sourcing investment property. The criteria for either are generally very different.
If you really want to optimise your returns from property, choose a buyer’s agent that specialises in investment property - one that uses good quality macro and micro-economic research and techniques to source only high-grade investment property.
This can maximise your chances of short, medium and long-term growth and minimise your chances of buying a property with little or no short to medium-term growth. You can use the equity gained in the short to medium-term to buy in the next growth area. This can have a great compounding effect over the long-term.
A mortgage broker acts as an intermediary, selling loans to a property buyer on behalf of the lenders.
Generally paid by the lender, a good mortgage broker should find the best loan from a large range of lenders, based on your unique financial circumstances.
Finance is such a critical part of property investing, with borrowing capacity one of its most powerful elements. Therefore, make sure you don’t focus too heavily on interest rates. While one lender may offer a rate that is 0.1 per cent lower, your borrowing capacity may decrease. On the other hand, a lender with a 0.1 per cent higher interest rate may allow you up to 20 per cent greater borrowing capacity – a difference you can make up, over time, through your property’s capital growth. It is something to keep in mind when comparing lenders.
Richard Sheppard is the Managing Director of inSynergy Property and Finance Solutions. Located in Brookvale, inSynergy provides professional property investment advice, property market research and specialised mortgage broking services to help every day Australians achieve better returns with lower risk from property. inSynergy is an accredited property market buyers’ agent.
inSynergy Property and Finance Solutions
www.insynergy.net.au
1300 308 808
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