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Who can advise on what?

Discussion in 'General Property Chat' started by Terry_w, 6th Nov, 2015.

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  1. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Many people are confused about what sort of advisor to engage to get advice. I have made a brief and incomplete summary below of various areas related to property investing.

    Summary

    Buyer’s agent services – licenced buyers agents.

    Conveyancing – registered conveyancers/settlement agents (in some states) or lawyers.

    Credit – Only Australian Credit Licence (ACL) holders or ACL representatives.

    Insurance – Australian Financial Services Licence (AFSL) or being an authorised representative of an AFSL holder.

    Financial Advice – AFSL holders or an authorised representative of an AFSL holder = Financial Planners or Financial Advisors.

    Land Tax – only lawyers.

    Legal Advice – lawyers (solicitors and barristers), but also some other groups can advise on some aspects, such as Tax Agents can advise on taxation law (commonwealth), Conveyancers can advise on certain aspects of property law.

    Property Investing – legally anyone can advise as there are no restrictions.

    Property sale or purchase – licenced real estate agents.

    Stamp Duty – only lawyers.

    SMSF – only an AFSL holder. There is a limited exemption for Accountants.

    Superannuation – only an AFSL holder.

    Tax Returns – registered tax agents. Accountants cannot give tax advice unless they are also tax agents, or lawyers.

    Tax Advice – Tax Agents, Lawyers and some financial planners for some tax issues.



    What else is there that I have missed?
     
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  2. devank

    devank Look, lets just get on with this, ok? Premium Member

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    Out of this list, who is actually take full responsibility for their service if things go wrong?
     
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  3. wombat777

    wombat777 Well-Known Member Premium Member

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    You have missed all the building-related professionals and trades.
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    What do you mean?

    If someone gives negligent advice they can be sued. If the advisor breaches contract they can also be sued.
     
  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    I don't know anything about these and licencing. Can you add?
     
  6. Hodge

    Hodge Well-Known Member

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    I'm surprised lawyers can only advise about land tax? I thought accountants would be included as well?

    I guess now i know why my accountant is always wrong when it comes to land tax. Sick of correcting him :rolleyes:
     
  7. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Yes many do advise, but there is no legal basis.
    I bet Paul will have some views on this!
     
  8. Hodge

    Hodge Well-Known Member

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    What's the difference between an accountant and a tax agent?
     
  9. wombat777

    wombat777 Well-Known Member Premium Member

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    Most trades have licenses for the work - particularly electricians, plumbers, etc.

    E.g. Electricians need to be licensed to do wiring including for power and data.

    You also have registration requirements for certain types of engineering work. There are state-based rules but a National Register is in the process of being established.
     
  10. York

    York Finance Broker Business Member

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    Accountants collate data and prepare financial statements for various purposes ensuring accuracy. (general description)
    Tax Agents specialize in matters relating to tax. So income tax, CGT, GST, FBT etc. They are the ones who can tell you which deductions you can claim and how different incomes will be taxed. Which entity structures to use for business purposes and can assist with tax planning and minimization strategies. They also can lodge tax returns for all entities.
     
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  11. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Tax agents may or may not have a degree in accounting. It is a different area to tax - but related. Accounting is the keeping of records
     
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  12. HUGH72

    HUGH72 Well-Known Member

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    I don't think you have missed anything Terry, only anonymous PC posters.
    They can advise on anything.:p
     
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  13. wombat777

    wombat777 Well-Known Member Premium Member

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    Clarifying my earlier post - There is a current requirement in legislation for Professional Engineers practising in Queensland to be registered.

    From the QLD Professional Engineers Act 2002:
    No other state currently has this type of legislation. It may appear soon though.

    Engineers Australia have just set up a National Engineering Register and have been planning for this for some time.
     
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  14. Scott No Mates

    Scott No Mates Well-Known Member

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    one can aaaaccc count, the other just attacks (sic)
     
  15. Xenia

    Xenia Adelaide Property Manager Business Member

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    is advice considered telling someone what to do or forming an opinion?
    thanks for the list BTW Terry - very helpful
     
  16. hugo.bawlz

    hugo.bawlz New Member

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    this is great, especially for a total newbie like myself. Thanks for putting together

    what sorts of fees or fee structures would each of the listed advisors charge?
     
  17. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    How long is a piece of string type question. Depends on the advice needed and depends on the advisor. Lawyers charge from $0 to $1500 per hour for example.
     
  18. S0805

    S0805 Well-Known Member

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    Terry, this may fall under legal advise. But to be specific and to reconfirm....
    Related Party Loans = Lawyers only ??? OR accountants & MB can helps as well....
     
  19. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    It depends on what aspect you are considering
    tax issues such as deductibility of interest, Part IVA = lawyers or tax agents
    terms of the agreement = lawyers
    security = lawyers
    estate planning aspects = lawyers

    I don't think this would fall under credit advice so don't think a mortgage broker could advise. If they could it would be along the lines of 'why don't you borrow from your spouse?'.
     
  20. House

    House Well-Known Member Premium Member

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    Read that a conveyancer is usually the cheaper and quicker option for a standard contract and a solicitor should be used if it's more complicated, is this generally true?