Real Estate Financial Planning service?

Discussion in 'Financial Planning' started by KingBendtner, 11th Sep, 2017.

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  1. KingBendtner

    KingBendtner Well-Known Member

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    I was meeting my Accountant (RJ Sanderson) last month and she offered me to introduce me to their "Wealth Management" team for a free initial consultation. I'd be interested on what they have to say when I meet them.

    So based on what I understand from your remarks, what I'm asking is really.. an unregulated "grey" area? So either A) an investment-savvy Mortgage Broker (not once-off transactional), or B) a BA who asks the right questions/bigger pictures (not only taking the search brief, but also trying to understand/recommend the client's portfolio position/direction)
     
  2. KingBendtner

    KingBendtner Well-Known Member

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    Hi @Terry_w good to meet you, I've been enjoying ready some of your posts on different Strategy/structure etc. Great contribution for the forum mate.

    Be keen to know more about this "Group". Are you happy to share here, otherwise I can PM you, cheers
     
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  3. KingBendtner

    KingBendtner Well-Known Member

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  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Anyone under the Dover Licence would be good. www,dover.com.au
     
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  5. Sackie

    Sackie Well-Known Member

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    I think that's one of the best ways to approach it. Understand the market you want to buy in, the values, the deals in the area, the target market, demographics etc and then if you so choose, leverage the BA to do the leg work and short list some of the deals for your approval.

    Generally the investors who are unhappy with their purchases via BAs are investors who have little to no clue about the market they are buying in and leave it completely up to the BA and then purchase whatever they recommend. Personally I think that's a ridiculous approach.
     
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  6. KingBendtner

    KingBendtner Well-Known Member

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    + 1

    Well said Peter
    And thanks for sharing the basic template. Yes, I was expecting a bit more personalized touch and content on page 8. e.g.
    Property 1 at Year 1... at price point range of $X-Y and rental yield of Z% projected CG x%/year
    Property 2 at Year 3... with renovation potential at year 6
    Property 3 at Year 5 .. with subdivision potential etc. etc.
     
  7. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    @KingBendtner that's what I'd expect from this sort of planning and I think it would be worth a lot. The problem is nobody is going to be able to give you this. Every property plan I've seen looks similar to that template.

    There is a lot of useful education in the template, it summaries a lot of different topics quite well so it's worth reading and understanding.
     
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  8. Simon Moore

    Simon Moore Residential & Commercial Mortgage Broker Business Member

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    You can get this from a good financial planner, the problem is because they can't take a percentage based cut on property it's going to cost you a fair whack up front.

    I know Hardline Wealth does this type of analysis, they are purely a fee for service model and don't take any asset based fees or commissions. If you give Cody a call I'm sure he'd be happy to share what he can do.

    The other issue is that going to a real advisor as opposed to a property spruiker, they actually have a duty of care and will suggest other asset classes if you are over exposed. You can knock back that advice, but a lot of property investors take this recommendation as some type of sacrilege.
     
    Last edited: 14th Sep, 2017
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  9. Ross Forrester

    Ross Forrester Well-Known Member

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    I have never met anybody that does the property buying stuff, mortgage broking, tax advisory and goal setting all in the one place well. The skill set for each area is very diverse.

    I have seen massively expensive fluff documents that are basically meaningless.

    Try to get a team that are happy to work collaboratively together. The whole one-stop-shop is a thing of the 90's.

    These things come down to assumptions that are almost always liner in growth targets. Life is not linear and life changes.
     
    Last edited: 12th Sep, 2017
  10. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    That's the main reason I don't do the forward projections on the actual properties - it's pretty meaningless. Look at Perth over the last 10 years. :rolleyes:
    Then look at Sydney. Buy well, let them do what they're going to do, and adjust course if/when necessary.
     
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  11. KingBendtner

    KingBendtner Well-Known Member

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    Hi @D.T. thanks for this. I had a look at their website, looks like they are proper licensed financial planner. From your experience, I believe they will offer you/their clients with a mix of asset classes? (not only property) - can we say 'Thanks, but no thanks. At this stage, understanding the risk and etc. we just want to consider property..'
     
  12. Paul@PAS

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

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    The history of the Property Investor Trust (TM) says it all. If it sounds too good to be true it probably is ...thats a great thing to remember when buying anything. Blend a complex sounding tax and "wealth" strategy into the fold and it can even be grounds for retention of clients in complex (expensive ?) structures they dont need or understand. Its like Hybrid trusts - Peddled hard 10 years ago they fell into disrepute and all the promises were just that. Then costly to fix IF at all. Some firms used them and build wealth advisory into it blending seminars, property, broking, tax and more....Unfront costs,trails, commissions, broker income, professional fees and more ...Who wins ? Perhaps the adviser ? So do your homework.

    Sometimes the most practical investment is the simple one. Educate yourself before buying and never invest in anything you dont understand.
     
  13. Knights of Ni

    Knights of Ni Well-Known Member

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    Peter is right here..... The thing about seeking advice is that it is a cathartic experience that tends to reinforce ideas you already have. (good or bad) hence when you read back a SOA from an Advisor, you can see and hear your own voice in there. My own son's want to enter the property investment field (as young men) and the advice I give them is to go to work for a builder, developer, broker, or agent and LEARN, LEARN, LEARN. Being able to capture opportunities will only come when you can recognise them!
     
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  14. KingBendtner

    KingBendtner Well-Known Member

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    Hi Simon, thanks for the pointer. Doesn't hurt to have a chat with them (Cody) I guess.
     
  15. KingBendtner

    KingBendtner Well-Known Member

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    100% Ross
    That's why I mentioned in my initial post that part of this "service" is to annually review and re-adjust where things at - with the portfolio, with life, and the market
    How I wish the answer to this post was straightforward, gotta do your own due diligence hey...