Incorrect Professional Advice That Was Correct With Time

i think it was a slip-up on my part

 

Can I humbly disagree with you.

I believe they have received a lot of professional advice, both here on the Forum and outside the Forum (valuers, bank, etc). From what I can read, they believe this advice is wrong (and they are right).

They are allowed to have that opinion as long as they accept the consequences, whether it be positive or negative.

 

I don't regard this sort of thing as professional advice, but various opinions of non professionals.

 

Fair enough. That is your opinion and I can accpet that.

 

And I think they are in trouble now because they did not seek professional advice before entering the contract with the vendor.

 

This is just a simple quote,
You are rich if and only if money you refuse tastes better than money you accept..

Works well for me..

 

Totally agree

 

So true. Love it.

 

KieranK
I have the opposite sort of.

I have an excellent accountant who I meet every 6 months, he advised me to sell all my USA properties that was 2 years ago, but I ignored his advice.

The following year he said... I am glad you did not sell those US properties, and I said "Sxxx you are good at your job but I don't take advice from accountants when it comes to property". He was not insulted.

My point is I go to my accountant to strategize for tax purposes etc.

Financial planner, that is my accountant.

That's just what I do, wrong or right, all to their own.

MTR

 

Morgans are a stock broker. www.morgans.com.au

 

This reminds me of a situation with one of our earlier accountants. We bought our first IP in 1992 in Mansfield for $125,000 and rented it immediately for $165pw. After about 5 years, the property hadn't moved in value; Brisbane was very flat during the period. When we saw our accountant, he said we had bought a 'lemon' and we should sell it. We couldn't understand this as it had been rented the whole time and it wasn't a drain on cashflow.

Luckily for us, we were too busy starting and growing our second and third businesses that we never got around to selling the IP (not a priority for us). Nearly 20 years after we got that advice, we still own the IP and has been rented all that time. It is now worth around $450,000+ and rents for $465 per week. The current tenant has been there for a while, she really looks after the place as if it was her own and just renews every 12 months. Last year, she even paid 12 months rent at the start of the new lease (with no discount from us). We accepted that without hesitation. The lease renews at the end of next month - the big question is, will she pay 12 months in advance again?

Back on topic, we changed accountants a long time ago. Thanks God.

We use our accountant for everything to do with tax, including getting their input on our strategies and tactics (eg buying another IP).

We use our financial planner (a lawyer by trade) to help us run our smsf, especially with strategy, both at operational level (how to best rollover the funds from our business sale, when should we go to pension phase, etc) and at investment level (mainly domestic and international shares).

Obviously, they both need to communicate with other to achieve the best outcome for us. I consulted with both of them, at least on a weekly basis, before, during and after the sale of our last business.

Works for us.

 

Sounds good KK

 

Sorry but for me, that Mansfield place would be a lemon. My parents had a Dundas Valley (Sydney) house they sold in 1996/1997 for 170k. It sold middle of last year for 1.32mill with not too much change to the property.... now that's not a lemon...

 

Back to OP @kierank question of advice.

Although it wasn't professional advice (as in paid) but I was really keen to get into the property asap and was looking at buying in Woodridge (Logan) QLD but the bank didn't allow it and was told by someone to wait and get a better asset. At the time I was gutted, I really wanted to get on board and start my journey. I could prove I could afford the repayments as I was living at home and had minimal expenses.

However fast forward about 10 years and I have a greater assets that has grown a lot more than Woodridge and this will soon set me up to buy another due to the capital growth I have achieved in the past ~5 years.

 

Bet your parents are really glad they sold that one!!!

Not as good as your example but 6% average growth year-on-year for 24 years is OK by me. I reckon this might jump to 7% average growth year-on-year for 25 years by the end of this year once Brisbane takes off and gets some of the growth that Sydney and Melbourne have just experienced. Always better to quote numbers at the end of a growth cycle than at the beginning .

Rental return for the 24 years have always been around 5+% of current market value. Currently, now 19% of original purchase price.

I am still very happy we kept the property!!!!

 

Parents didnt think they could keep it....
12% annual yoy growth for a period of around 20 years is nothing to be sneezed at...

 

Bugger!!!

I would buy property every day if I could get sort of CG.

 

My mum's kinda funny... she keeps telling me to sell sell sell... she did the same to my sister too at the beginning of the boom... anyway, my sister sold partway through the boom and a year later, a property in her townhouse complex (not as good as hers!) sold for about 200k more than my sisters. So its best to not listen...

 

@kierank -- bringing up an old post. Do you mind giving a bit more detail around this? Not sure why not having life insurance is good?

Thanks!