Property/Financial Advisor recommendation in Adelaide

Discussion in 'Financial Planning' started by Sasha Adelaide, 8th May, 2017.

Join Australia's most dynamic and respected property investment community
  1. Sasha Adelaide

    Sasha Adelaide Member

    Joined:
    8th May, 2017
    Posts:
    8
    Location:
    Adelaide
    Hi,

    Im new to this thread. I am inheriting my parents deceased estate (1/3rd) and am thinking of buying out the other 2 beneficiaries and renting out the house as an investment. This will be my first investment, I dont have knowledge in the property industry. I need financial/property advise from someone who is experienced in this area and who can look at my financial situation and advise me on what the best option is if I should buy out the other 2 or if I should sell and then purchase a different cheaper investment property. I have done some research and know that by purchasing my parents home I would be saving on 1/3rd stamp duty, capital gains tax and lands tax so that seems like a great saving opportunity. As my parents are both deceased its hard as I dont have a parent role model to turn to for advice. I seeked free financial advise from one company before christmas who im still waiting to receive their report/advise. They really were selling me to put my money into shares, super etc. I dont know if there are financial advisers in Adelaide who have experience and can advise on property investment. I know that majority financial advisers get their bonuses from referring their clients to super funds, stockbrokers etc. I searched for property advisers and many seem to be companies that have a list of properties they want to sell you. Surely there is somewhere I can go for advise?
     
  2. DaveM

    DaveM Well-Known Member

    Joined:
    14th Jun, 2015
    Posts:
    3,761
    Location:
    Adelaide & Sydney
    I use Precision Private Wealth - @Corey Batt is the man to speak to. He does my lending and now also my financial advice/planning for myself and clients
     
    tobe likes this.
  3. Corey Batt

    Corey Batt Well-Known Member

    Joined:
    14th Jun, 2015
    Posts:
    2,091
    Location:
    Adelaide, SA
    Hi Sasha

    In terms of financial advice - you really get what you pay for. If you're not paying someone in the property advice/financial advice field - that means they're having to earn their remuneration elsewhere. (in property this is generally in flogging off new property to you for developer commissions). If you're serious about wanting to make good choices which will get you towards your longer term aspirations - pay for good quality advice and not skimp out.

    As to whether to sell the current property or keep it and buy out the other parties - a lot of that is subjective and will come down to personal preference and estimations, than any adviser providing advice. The individual attributes of the property, your capacity to be able to buy elsewhere, tax considerations - there's a lot of factors which need to be considered and an adviser will not necessarily advise you on these, and if you do they're just saying their personal preference, not objective facts guaranteed to be right.

    The best bet for your situation is going to be to sit down with a property investment focused broker who will be able to establish:
    • whether you have any capacity to invest in further property
    • how much you can borrow to invest if you sell
    • greater strategy/structuring requirements so you have your setup as efficient as possible
    From there you can weigh up whether its worth actually selling the property, or to buy out the property and go from there.
     
  4. Xenia

    Xenia Well-Known Member

    Joined:
    16th Oct, 2015
    Posts:
    3,863
    Sasha
    can I suggest you speak to a finance broker who specialises in property investment. I have a financial advisor I can recommend who can look at wealth preservation strategies but I would recommend speaking first to an experienced property finance broker. I have messaged you the details of a brilliant one who has pulled some rabbits out of a hat for us this week. Speak to her, she is in Adelaide and you will be in great hands with her.
     
  5. S1mon

    S1mon Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    604
    Location:
    canberra
    your name isn't Sasha Batt is it ;)
     
  6. sash

    sash Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    15,606
    Location:
    Sydney
    I would strongly suggest you get some basic education ...attend some of the free FP night...before you engage a financial planner.

    My personal opinion is that most FP are focused on maximising their fees and if you don't know the basics....you will come off second best.

    Having said that...if you are not prepared to do the hard yards then be prepared to pay $2000 for a financial plan plus 1-2% of funds invested on a ongoing basis......so best to get educated....don't be in a rush....
     
    Xenia likes this.
  7. Corey Batt

    Corey Batt Well-Known Member

    Joined:
    14th Jun, 2015
    Posts:
    2,091
    Location:
    Adelaide, SA
    Sheesh Sash when's the last time you spoke with a FP? Not that many FP's charging 1%-2% for management for FUM.

    But overall the concept is there - make sure you're looking at a strategy which works for your goals - not into the products that an adviser is 'comfortable' with. If you feel you're being pushed into an investment strategy you're not comfortable with you will need to look at why this is being done and whether it's aligned with your interests.
     
  8. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,189
    Location:
    Adelaide and Gold Coast
    Hehe its not the 1990's anymore, FP's dont charge 1%+ anymore :)
     
  9. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,319
    Location:
    Sydney
    Property advice is generally never licensed financial advice. A license wont extend to real estate as a product. ie a AFSL wont cover property as its not a financial product that is regulated. It is regulated by states ie Fair Trading etc Once you understand that issue then....

    Most property advisers have a direct or indirect remuneration bias. Many property spruikers / sharks or even legit advisers have a single strategy - Keep borrowing and buying property as thats all they do. So take care. Best interest tests etc dont apply.

    Most financial planners are fee or product sale or fee for advice remunerated. Asking a FP for a comprehensive financial plan will be VERY expensive. Asking a dodgy property spruiker could be even more expensive. BUT there are some excellent property advisers out there too. The worst of the lot are those small numbers of financial planners who make it seem they are giving financial advice when they arent or they are giving the old single strategy advice based on a remuneration outcome etc.

    Take care when you swim in waters where there are sharks known to frequent.
     
    Xenia likes this.
  10. sash

    sash Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    15,606
    Location:
    Sydney
    It might be the case in Adelaide....but in Sydney...a plan will cost about 5k.


    On top they will also charge a fee for funds going in.

    OK...1-2% was based on investing 500k....but that included 5-10k for the plan and another 3-5k for investing into funds.

    The ongoing is a lot less typically about 0.25-0.5% of FUM.
     
    Xenia likes this.
  11. Sasha Adelaide

    Sasha Adelaide Member

    Joined:
    8th May, 2017
    Posts:
    8
    Location:
    Adelaide
    As to whether to sell the current property or keep it and buy out the other parties - a lot of that is subjective and will come down to personal preference and estimations, than any adviser providing advice. The individual attributes of the property, your capacity to be able to buy elsewhere, tax considerations - there's a lot of factors which need to be considered and an adviser will not necessarily advise you on these, and if you do they're just saying their personal preference, not objective facts guaranteed to be right.

    The best bet for your situation is going to be to sit down with a property investment focused broker who will be able to establish:
    • whether you have any capacity to invest in further property
    • how much you can borrow to invest if you sell
    • greater strategy/structuring requirements so you have your setup as efficient as possible
    From there you can weigh up whether its worth actually selling the property, or to buy out the property and go from there.[/QUOTE]

    Hi Corey, Thank you for your respsonse. So Precision Funding are a financial advise and mortgage broker firm? Just checking there would be no cost to look at what my loan capacity is? I have used a mortgage broker firm to determine my loan capacity wtih my current home and have been happy with them, just wondering what would be different about using your firm that i could also get financial advise? What would be the cost (you can private message me) for financail advise? As a finance strategist for Precision Private Wealth can you provide advice on all the factors you mentioned? I can provide you with the details of the property, the sums I have come up with, licensed valuation, and real estate valuations. Would you provide your preference after looking at the figures if I would be better off to buy out or sell and then buy a cheaper home as an investment, would you have an idea on tax considerations or would it be best to speak to my accountant.
     
  12. Sasha Adelaide

    Sasha Adelaide Member

    Joined:
    8th May, 2017
    Posts:
    8
    Location:
    Adelaide
    Hi Paul, I know there are a lot of sharks out there but unfortunatly for me as I dont have experience in the industry it makes it difficult to determine which ones are sharks. I hate going for free financial advise to then be sold products that I am not interested in, superanuation. I have read that AFSL wont cover property but its all still confusing to me. I have no idea which are the excelllent property advisers, do you have any recomendations?. I undertand those who sell products, earn their remuneration, Im not interested in their products. I dont have a problem paying for advise, but I dont want to pay for a very expensive comprehensive report which will talk about funeral plan, insurance, superannuation and be a waste of money as it does not answer my question. I havent had much experience with financial advisers, but the ones I have been to, even the one that was paid for by my inusrance was a waste of time. Im only interested in paying for property advise to give me some direction on which way to go and what is best for me financially.
     
  13. Sasha Adelaide

    Sasha Adelaide Member

    Joined:
    8th May, 2017
    Posts:
    8
    Location:
    Adelaide
     
  14. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,189
    Location:
    Adelaide and Gold Coast
    Another vote for Precision here, I've used both their mortgage broking and financial planning divisions myself personally.
     
  15. sash

    sash Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    15,606
    Location:
    Sydney
    look up the major companies i am not sure of adelaide. a lot will do an initial free one hour to discuss what they will.

    spring financial have a lot of free ebooks tgat might be of help. also centrelink used to run some seminars also
     
  16. sash

    sash Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    15,606
    Location:
    Sydney
    do you have any potential conflicts if interests you need to declare?
     
    jim1964 and Sasha Adelaide like this.
  17. Sasha Adelaide

    Sasha Adelaide Member

    Joined:
    8th May, 2017
    Posts:
    8
    Location:
    Adelaide
    On Dave M's Revaluate website it displays that you all work closely together. You at DT Property and Corey at Precision all refer clients to one another, as you all work closely as a team of professional partners, so it does not suprise me that you anbd Dave have recomended Precision. I am interested to see how Precision can help me, I have been impressed with Coreys portfolio and articles.
     
  18. Sasha Adelaide

    Sasha Adelaide Member

    Joined:
    8th May, 2017
    Posts:
    8
    Location:
    Adelaide
    Yes
    Yes I have noticed that they all work together, refer clients to one anothers services. Cant help wonder if they would get a bonus for referrals?
     
  19. Sasha Adelaide

    Sasha Adelaide Member

    Joined:
    8th May, 2017
    Posts:
    8
    Location:
    Adelaide
    No im not sasha bat
     
  20. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,189
    Location:
    Adelaide and Gold Coast
    Not at all, why?