A successful property investor is one that connects with various professionals and trades to put together their very own A-Team. Members of this A-Team may be professionals and services that you currently use, or you may need to grow your network as you become a sophisticated investor.
This A-Team needs to include a Mortgage Broker, a Conveyancer, an Accountant, Property Manager, good quality tradespeople, and an Investment Advisor.
Accountant An Accountant will help you manage your money and advise of any changes to the tax system that you should know about, as well as help you make all the relevant claims in which you are entitled to. They can also advise whether or not you should be purchasing property in joint names, individual names or within a trust structure.
Mortgage Broker Mortgage Brokers have been gaining market share in Australia every year. The 2019 Property Investment Professionals of Australia (PIPA) investor confidence survey revealed that 83% of respondents are looking to finance their next loan through a Mortgage Broker, up from 71% in 2018. If you’re looking to make the move on a new investment property, it is worth getting in touch with your Mortgage Broker to assist you in finding the best product to suit your current situation and the direction you’re headed.
Property Manager While there are some investors who are tempted to self-manage their investment properties, there are risks involved in this approach if you don’t have the intimate knowledge of the relevant Tenancies Act or having time to manage each property effectively. A great Property Manager will help you source good quality tenants, keep you abreast of any maintenance issues, save you time, and will alleviate some of the emotion and stress from the process. Their fees are tax deductible, so this should be looked at as a necessary expense.
Conveyancer There is raft of complicated paperwork during the process of transacting a property including the Contract of Sale, the banks mortgage documents and other paperwork related to the property. You need to appoint a qualified and reputable Conveyancer, with experience in the state that the property resides, to comb through the legal jargon for you. They will help with any complicated terms and conditions and translate the legal gibberish. While you’re not legally obliged to appoint a Conveyancer, it will make the process of transacting property a much smoother process.
Quantity Surveyor Ensure you get a Quantity Surveyor that specialises in residential property depreciation to prepare a tax depreciation schedule for each applicable property. A specialist Quantity Surveyor is worth having in your A-Team as they will guarantee that you’re claiming every item in which you are entitled to. A specialist will also keep abreast of any new tax changes so you keep you tax returns compliant. The ATO recognises Quantity Surveyors as one of the few professionals which have the required construction costing skills to accurately calculate the cost of individual items for the purposes of tax depreciation.
Investment Advisor Being able to accurately calculate the expected cashflows of a potential purchase, or to check the sums on one of your existing investment properties is paramount to keeping your investment dreams alive. Cashflow keeps your portfolio afloat for the long term. There can be a number of hidden costs, or costs that you haven’t factored in when doing your preliminary sums to determine whether an investment is viable. An Investment Advisor can ensure you’re on the right path to achieve wealth.
Mentor It’s a great move to have someone who is an experienced property investor who you can turn to for mentorship, learn from their real life experiences, and ask advice. Investing in property can be a very lonely pursuit. It has its ups and downs so it’s nice to have a friend who is on a similar wavelength as you, even if it’s just to chat about your situation and investing plans.
Tradespeople Having good quality, reliable trades in your contact list can be invaluable at times. Like in any profession not all tradies are created equal, and once you find one you are comfortable with and provides you top level service, you need to keep them on your side. The best way to do this is to provide them with a detailed scope of works for any jobs that you are wanting quoted, provide clear and thorough communication, and if possible ensure you pay them as soon as you receive the bill.
If you don’t know where to start, we can work with you to build an A-Team that suits your needs. Click here to book your free 45min strategy session today
Luke Jorgensen - Lush Property
Tags - Property Investment; Property Development; Renovation; Valuation; Valuer; First Home Buyer; Buyers Agent; Buyers Advocacy