Hello experts, I love reading through the posts on these forums. They sure highlight that there are a lot of things to consider and get right at the beginning. And that some of you have real expertise. I’d like to soon purchase some property. Before that though, I’d really like to get some good advise. My question is “who needs to be on my team?” Being from overseas the different professions are a little bit complex for me to distinguish. I know there are conveyancers and accountants and structure experts and brokers and financial advisers and probably more. They probably all need to be on my team, but who does one engage first? And is it usual that the first professional one deals with can recommend good ones of the other professions? I do not really plan to get into the property investing business, but I’d still like to set it up correctly from the beginning. The plan is to buy a larger piece of land (in an area which I like to live in, not an area that I choose because of it’s great investment value) to build my PPOR on as well as build a separate small accommodation business on it. Thank you for helping
When you say you don't want to get into property investing business - what do you exactly mean? Whilst one needs to treat investing as a business, investing for capital growth or rental yield won't necessarily fall in the bucket of 'property investing business' vs someone who buys, renovates, sells / flips or develops properties. How big is this piece of land? Also, when you say build a small accommodation business on it, are you referring to putting a granny flat and use it for air bnb? or is it on a larger scale? Question for you - how will setting it up correctly from the beginning help you moving forward? First step would be determining your borrowing capacity, in line with what you are trying to do, and your long term goals.
The first thing you need to do is find out how much money you can borrow for this purchase and any subsequent purchases. A broker or banker assists with this. We can break this down to at what LVR you can purchase, how you can structure your incomes and liabilities (such as reducing or closing credit card cards, waiting 3 months to show YTD income, etc). You can see if there is any limitations to what you want to buy such as units in specific postcodes, property types, etc. The next step is in what structure should you purchase the property and this is a job for the Accountant. Its always good when the Accountant and the broker/banker are talking and discussing strategies (with you involved of course). In terms of who to choose - you should network with other investors and see who they have used and who they recommend. You should then speak to those professionals and see if you can get along with them. By this I mean feel comfortable asking questions, comfortable with the time it takes for them to respond, are they easy to understand, etc. There are other professionals that may be necessary such as buyers agents, etc but these 2 professionals are your starting point.
If you're new to this country I've previously written a blog article about who needs to be on your trusted team on the property investing journey. It's nowhere near comprehensive but should give you some idea to start: The importance of having a trusted team around you – Part 1 The importance of having a trusted team around you – Part 2 Cheers, David
I agree with Shahin. A good accountant and a decent finance person will cover most of it. If you feel the need to get into convoluted ownership structures and need help with buying then hit up a good solicitor and a BA too. Cheers Jamie
First see how much you can borrow with a broker. Then determine ownership structure with a lawyer. If you can't borrow there may be no point in going further yet until you can.
