Independent Property Investment Advisor?

Hello all

I'm sorry if this has been answered before - I have searched the forums with no success.

I am seeking a suitably qualified, independent property expert. Is there such a thing as a fee for service Property Investment Advisor who provides guidance on locations and type of property to look for? I am not sure a buyer's agent fits my criteria. Maybe a Financial Advisor who is qualified to provide property advice? Although that doesn't seem too common. If there is such a thing, can anyone recommend someone based on the Sunshine Coast?

It's our first IP - I have been doing a lot of research on property investment from various sources including this forum which has been very helpful, as well as various books and podcasts etc. I have narrowed down the property type and a few locations I think would be suitable. However, I am not an expert so I would feel more comfortable with some form of guidance to let me know if I'm on the right track.

I know we will need other expert advice - we will be seeing an accountant who understands property investment. I'm not sure we need a financial planner unless it's specifically for property investment advice - we are in a good financial position, have done a financial plan and have super and insurances sorted etc. (Happy to be corrected on this).

Thanks and apologies again if this has been answered elsewhere!

 

What questions do you want the financial planner to answer?

 

Thanks for your reply, Rolf. I might be wrong but to me financial planners seem more focussed on investing in the share market, ensuring you're managing your debt, and getting your super and insurances sorted? I guess even if they were able to give me advice on property investment in general (which could definitely be useful - I haven't ruled this out), I am more looking for who can give us guidance in 'go and buy this type of property in one of these locations'. I have done a fair bit of research and I have a rough idea but I guess I am lacking confidence that my findings are correct.

 

Hey Trainee, thanks for your reply. I am really just wanting to bounce ideas off an independent property professional who doesn't have a vested interest in selling me something/getting a commission. I have some ideas of what and where to buy (and what not to buy), but lacking the confidence that I am on the right track I suppose.. I know there's no crystal ball, but I want to avoid making rookie mistakes if there's anything I've missed/haven't thought of.

 

Many brokers seem to give the sort of advice on what and where to buy - i don't myself though I might tell clients what not to buy.

 

Often the hardest part of property investing is figuring out where to buy. Once you can determine that, the rest of the research is fairly easy. Unfortunately there's no easy answers for this.

 

Strategy tends to be the hardest thing to sell, because no one wants to pay for it.

Think of what questions you want to ask this person. And what answers you would want to convince you one way or the other. Then just research the answers yourself. Reading this forum will help a lot.

Unfortunately the strategy really has to come from you because you have to be convinced it will work.

 

Seems to me property investing should be considered as a business. So what you want is someone to tell you what business to go into and how to run it?

The only answer is self education as it’s your business.

 

If I was buying I would buy Mildura now. I think @Fargo would agree -)

As to the OP:
And all the other complicated financial stuff? Forget it. Just do it as most never do anything except look and talk. Financial advisors? I long for the days when a good family accountant was able to do everything. That's what my ethnic family did to generate wealth through many things property included. Good ole fashioned accountant. Did the lot. These days watch your back, self educate, join forums like this and be very careful about who knows their stuff and who is not worth the new silly licenced advisor paper these days
And I think you got a be a lot smarter than me and just buy and hold. I think buy under market always key, renovate, improve does a lot to your net worth. Harder done than all those cheery YouTube flippers and BRRRR people will have you believe. That is why I haven't done it but you need a team in your pocket not some helpful 'one stop shop' and to battle with trades when life happens unlike they show in books and videos. Still I wanna try manufacturing growth but I go in eyes open.

 

I you feel uncomfortable doing sufficient research yourself (and that would be totally justifiable), I would consider the following professionals for advice:

1. Qualified Property Investment Advisor (QPIA). You can have a look on the Property Investment Professionals of Australia (PIPA) website for members (https://www.pipa.asn.au/search/). To me the is like the FP of the property world. They should ask you what your long term goals are, look at your cashflow and then model a portfolio to meet your goals (I would steer clear of your standard FP, accountant or mortgage broker for any where/what to buy questions)
2. If you have already got a strategy, understand your cashflow and engaged an MB and accountant/legal professional about structuring (to me this is the bit you can do yourself), then I would consider a buyers agent (association link here Best Investment Property Buyer's Agents & Advocates Aus | Real Estate Buyers Agents Association of Australia (REBAA) Inc.). You should be able to tell them "I need a property sub $600k, that going to give me 5% long term growth and 4.5% gross yield and is set and forget" or whatever your strategy requires. They should have access to data and most importantly agents to source the property. If you are a borderless investor, I see value in this approach

Most importantly for me, I would NOT TAKE INVESTMENT ADVICE from someone who is not fee for service. Anyone providing you "free" advice but getting a commission kickback elsewhere, to me has a potential conflict of interest. Don't confuse this with MB's though, advice on loans and loans structuring for commission is standard and not a problem. Just be careful of the one that tells you "I've got this great deal for you"

 

Why not post the locations and type of property you're looking at and possibly get feedback here on Property Chat, could be some experts in the area you're interested in watching the thread.

 

Our end goal is to eventually own the property outright, with the rent as a supplement to our income. Positively geared as soon as possible (Hoping to do minor cosmetic renos to increase equity/rental income).

Budget of $550k max inc stamp duty etc. Tossing up between some of the 'rising' north Brisbane suburbs to be closer to CBD aiming for CG but seems to be older houses with asbestos etc near (on) main roads or train lines that I expect would come with some maintenance headaches. Otherwise looking at Petrie close to new uni area - I see a few people on here have said they think the growth has already happened but I'm hoping the area will become more popular in years to come with The Mill precinct opening up.

Just continuing to read and research as much as I can. Still doing due diligence on a few suburbs, so many things to consider with public housing areas, zoning changes, flooding etc - this forum has helped me so much with what to look for.

Really appreciate everyone who contributes so much on this forum, what a great resource it is.

 

As Rolf has said, there are not too many properly licensed FP's or advisers out there that will give you specific advice on which property to buy.

If main goal is to increase +'ve cash flow there are a couple of specific strategies to assist with this goal.

If the main goal is create wealth for later on in retirement this may necessitate a slightly different approach looking more towards growth long term.

And if the main goal is to pay down NTD, this may involve another different strategic approach again.

No advice

 

Hi Seabreeze, my two cents is that the property industry is immature in this particular area for advice. As @hvdw87 said, the Property Investment Professionals of Australia have the 'Qualified Property Investment Advisor' qualification which is about the closest thing to what you are / were looking for.

One note of caution is perhaps ask an advisor what experience they have modelling cash flows? There is quite a difference between learning ethics and standards to abide by and being able to model what a portfolio might look like to help you reach your goal. I use the Moorr app (no affiliation) and website to track and forecast my portfolio / finances. I think it's really useful. I use my own financial models / spreadsheets if there is something in particular I want to analyse.

Financial planners can't provide advice on property generally as it falls outside the boundary of their professional indemnity insurance. This is a bit mad when you think about it given the store of wealth Australians have in property. Exceptions to this include listed property financial products such as Real Estate Investment Trusts (REITs).