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Financial Advisor any recommendations?

Discussion in 'Property Finance' started by Mel_C, 12th Dec, 2015.

  1. Mel_C

    Mel_C Well-Known Member

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    We are at a point where we need some advice on what our next investment move should be. We are toying with the idea of renting out our PPOR on the GC and heading to Brisbane to renovate another place next year. Our PPOR is fully paid off as we sold our Sydney property so we have good equity but we have a dud mining town investment that has obviously lost value but is at least rented however it is costing us $100 a week. We have $120,000 owing on this property. I am studying at the moment and staying home with our 2 young children. So we only have one income until I will start working again in 2017.

    We took some risks while we were child free but want to make sure we are a little less risky moving forward..... so I would love to know if anyone can recommend any good advisers that can help us with our next move or just tell us to sit tight for now !
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Sounds like you want advice regarding investment relating to property. a financial advisor may not be the best person for this. a tax adviser may be the way to go - lawyer or tax agent.
     
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  3. Mel_C

    Mel_C Well-Known Member

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    Thanks Terry. We are open to other investments as well we just dont want to make the same mistakes as we have in the past so dont want to jump into anything until we have looked at the numbers and risks with someone .
     
  4. Hodor

    Hodor Well-Known Member

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    I think it is important to educate yourself as much as you can before speaking to a financial advisor. Along with that determine what you want to achieve from your investing so you can confirm that they are working towards YOUR goals.

    As Terry mentioned a financial advisor may not fit for you if you are into property investment. I spoke to one once on a free consultation and they seemed horrified that anyone would leverage into property, debt equaled risk with no concern for any upside. Basically their ideas were by a PPoR - pay it off, buy IP1 - pay it off etc and while doing that give them cash to play with on the stock market which they had a history of doing with average type returns.
     
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  5. Mel_C

    Mel_C Well-Known Member

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    Thanks @Hodor yes education is definitely key and learning from your mistakes I think. I thought the feedback may be that a financial adviser may not be ideal Im just a bit lost with who to approach at the moment not to necessarily take their advice but to at least give us some different options and perspectives...
     
  6. tobe

    tobe Well-Known Member

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    Before seeing an adviser, make sure you know the questions to ask them. Get a couple of investment books from the library and have a read.
    Read and post more on here.
     
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  7. Mel_C

    Mel_C Well-Known Member

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    I have 5 out from the library at the moment...so Im hoping to get some reading time now over the Christmas break !
     
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  8. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    It's great that your PPOR is paid off, but that becomes less great if you're going to turn it into an IP. Buying a new ppor in Brissy will mean you have an IP with no deductible interest and a home with a large non deductible debt.

    Financially there are probably better options.
     
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  9. Hodor

    Hodor Well-Known Member

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    Great point Jess! Planning ahead and using things like offset accounts to maximise deductible debt save 1000s
     
  10. Xenia

    Xenia Adelaide Property Manager Business Member

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    I am an advocate in self education and self awareness in everything, your financial, situation, your health, your own psychology and personal growth.

    Seek opinions but know that they are just opinions and view points stemming from that persons own model of the world.

    Personally, I take bits of advice from a lot of people then work out strategies that will work for me and that fit in my life best. I also change those strategies and views often as new information becomes available. I'm always learning and believe there can never be an end to growth.

    Finances change, markets change, strategies need to constantly change direction. There is no one right way and if there ever was, it would be for a short time.

    I would suggest - educate yourself and make yourself your own financial experts, then seek advice from others to gain ideas using their view points.
     
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  11. Mel_C

    Mel_C Well-Known Member

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    I fib we have$5000 owing on this house . I presume we would move all our equity over to our Brisbane PPOR if we turned this into our investment property. We would then live there for a year and plan next move once I know where I will be working. We would want to come back to the GC house eventually we love it to much :)

    So with 100k salary
    An investment we cant sell and costs about $60 a week after tax if rented. The risk is also that it may sit un rented for a long time. Then costing us $200 a week before tax. We considered selling for a considerable loss but have even missed the boat on that now as last week they announced the main mine in town was being put into maintenance.

    We have a house worth $600- 630 k would rent for about 650 a week. We could just buy an investment in Brisbane rather than move there but I am finding the yields a killer in our situation where as our PPOR will get decent returns.

    Then the other option is to stay here enjoy life finish uni and invest again in 2017 when we can easily afford the loss on the mining investment !
     
    Last edited: 12th Dec, 2015
  12. Mel_C

    Mel_C Well-Known Member

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    Yep we at least got that right! We do have offset accounts.
     
  13. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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  14. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    But have you paid off the loan, or have an amount almost equal to the loan in the offset account?
     
  15. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    "I presume we would move all our equity over to our Brisbane PPOR if we turned this into our investment property. "
    @Mel_C

    Unless those funds are in your offset, moving the equity around won't change the deductibility. If they are in your offset, that's perfect! :)
     
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  16. Mel_C

    Mel_C Well-Known Member

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    No we have not paid off the loan completely. The funds are available in our offset accounts.
     
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  17. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Then you are in luck - not luck but good planning. As long as you have never taken any money from redraw the loan balance should be deductible if that property were to become an investment. You would just take your offset account with you to the new property.
     
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  18. Mel_C

    Mel_C Well-Known Member

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    MY husband looks after this side of things and he does have some financial acumen ( i need to read more) so I believe he did set everything up properly as he knows he has a crazy wife that often likes to move from their PPOR once renovations are complete and start again somewhere else !
     
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  19. Mel_C

    Mel_C Well-Known Member

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    Does anyone here have any insights into what they would do in our situation?
     
  20. thatbum

    thatbum Well-Known Member

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    Yeah I wouldn't bother with a financial advisor when this forum is better than any sort of advisor or paid service.

    Frankly, it sounds like you've been either unlucky or made some bad choices in the past - and personally I think the solution is to put time and effort into learning and research so your next move is a more successful one.

    As opposed to throwing money at an advisor and hoping that is the solution.
     
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