Financial Planning with Property in mind

Good afternoon,

My partner and I are about to sit down with a financial planner in 2 weeks. We have two IPs between us and a bit of cash in the bank and Were both in our mid 20's.

I have a few questionson what the finnacial planner can offer as it's never really clear.

1. Do we need a financial planner at our age?

2. Would the FP be able to help develop a investment strategys focusing on both property and shares? Or do they specialise in one or the other?

3. Could they advise if we should sell a property pending ROI calculations?

We are looking to develop a 5-10 year strategy with high focus on property. I feel that a property mentor might be more what I'm looking for?

Thanks in advance

 

1. do you want advice on a financial product?
2. potentially.
3. many do suggest property be sol.d

 

Thanks for the response.

No not at all. I just want to talk to professional about creating a good investment strategy.

If a planner is possable the wrong person who should I be seeking?

 

You’ll need to self educate. There is no sure fire path to follow. Most professionals either won’t be able to advise on what you are after or have vested interests which will become clear

 

I'm very big on self education but I feel I need guidance.

I'll see how it goes and let you guys know.

 

yeah i don't really know who you should talk to.
Start reading up as much as you can and develop your own plan. Talk to a variety of professionals, especially if they are not charging you, but keep a sceptical attitude.

 

Just picked up on this thread - how did you go?

Bet you the planner tells you about an awesome inner city apartment?

Hope it all goes well!

Cheers Ivan

 

There are several types

1. Spruikers who will give you a financial plan that recommends...more property. Surprise. They will also assist with loans and also likely have developers who they recommend. Ahhh. run. Often with names in the busienss that include "wealth etc"when wht they do is sell debt laden property. Debt and wealth are different things.
2. A real financial planner who will want to discuss your super, financial products and insurance. They may either like property and suggest another property is they get involved with spruikers or may dislike property because they cant charge fees.

Property is NOT a regulated financial product

 

Assuming you had a honest and ethical fp, how would they recommend property? They dont get paid for it, so they would have to be paid for the plan. Or they branch out into mortgage broking but that would require volume so partnering with developers. Thats a small step from partnering with spruikers.

How does property look in a asset allocation model? For most property investors it looks like there allocation to property is at unsafe levels with the high gearing.

 

Hi Keiren, a good broker will be able to help you devise your own plan, and is likely to be a better option than seeing a FP for this - they don't really deal with property.

Once you know what your borrowing capacity looks like, you'll have a better idea of your options and the best way forward from there.

We're in the process of launching a course for new investors, so if you're interested in going through the beta, let me know (We're most certainly NOT in bed with any developers/sales agents etc...and won't have anything to do with your actual purchase)

 

Mid 20’s , property market relatively flat . Time is on your side .

We started seriously looking after turning 40 .

Several years before , my father suggested we talk to his advisor before we did anything . His advice was pay down personal debt .

Was the worst advice for us at the time and stopped us moving quicker and missing out on the boom in Sydney at the time . There is bad debt , but there is good debt and good debt will accelerate your path massively , BUT , you need to understand the risks .

The best advisor I’ve come across is this forum .

Read , listen to everyone , don’t believe anyone , don’t find a guru who you follow , but gradually work it out for your self . Anything else will give you average results or worse which is what most people get . You’re here because you want to better than that , and to do that , self educate . There will be people you will end up listening to and following the advice of , but you will know the questions to ask and you will know BS when you hear it .

The worst mess I’ve seen here revolved around a guru who was very active here in the naughties who was very believable , but had major blind spots over the risks his schemes involved as did MOST of the forum ...

There are numerous books you will see recommended . Read them all . Rich dad poor dad was the one that opened my eyes , but I’ve read most of the ones that get mentioned .

Ask questions . People will answer .

Don’t buy from a spruiker . Use a BA if you have too ( one recommended here ) But , you’ll learn more if you DIY .

Right at the moment , I don’t think there’s a rush . But I’d be doing my DD with a view to buying your first one in the next 6-12 months .

TIMING IS CRITICAL . People who say otherwise , are really saying , “ if you can’t buy at any time in the cycle MY business model of making money by helping you buy property won’t give me a consistent income “

You can make very good money by buying outside Sydney and Melbourne and in WELL LOCATED regionals at the right time in the cycle . DONT BUY MINING TOWNS ....

Wait until you can read all the recommendations by experts and can give a considered opinion on them , seeing the flaws and strengths in them .

I read and studied for close to a year before buying our first IP , getting the ANALYSIS Paralysis Award at the first forum big Bbq . Then we bought close to 20 properties in the next 2 years .

Cliff

 

... and then I learnt how little I knew.

One must take action and one must learn from this.

One will (probably) make mistakes and one must learn from these.

One will have setbacks but one must have the strength to get back up and carry on.

...

 

And one must try to learn more from others mistakes than their own.

It's much cheaper!