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who should I speak to first?

Discussion in 'Accounting & Tax' started by Mavis, 25th May, 2016.

  1. Mavis

    Mavis Well-Known Member

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    25th May, 2016
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    VIC
    Hi all,
    Hoping someone would shed some light on who I should speak to - am hoping to get some financial advice / set up for medium to long term through property investing..

    I know where we would like to get to in a few years but need some assistance with getting there... someone who can look at our financial situation and offer advice / options..
    Financial advisor? Mortgage broker?

    Thanks!
     
  2. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Having a close relationship with an Accountant and Finance person is crucial.

    Finance Broker or Banker will tell you what is possible depending on your strategy; i.e. development, commercial, residential, equipment, etc and an Accountant will advise you on the tax implications/considerations.

    Having both the Accountant and Finance Broker or Banker talking to each other is also key. For example the Accountant may recommend a strategy which may not be financed so its key that all 3 parties are communicating with one another.
     
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  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    can you quantify what you are trying to achieve through investing ?

    Ie what is the end goal?

    without that, neither broker nor accountant are much use in my view

    ta
    rolf
     
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  4. Mavis

    Mavis Well-Known Member

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    We want to buy a property around illawarra which will be our PPOR in a few years. We currently live in Vic (ppor)

    We have some money from a sale which we are wondering if it's worth investing in a "smaller" property soon and use that as equity towards the nsw property down the track or would we be better off minimising our repayments now and save up for the nsw property when we are ready?
     
  5. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    Spot on Rolf. Many accountants and advisers who promote property financial plans make serious $ from flogging property and this can be a self-interest concern. Accountants cant strictly give financial advice or credit advice unless licensed and a license generally wont cover property advice as that market is really unregulated or the expertise of a licensed real estate agent who you shouldnt trust for finance etc. They may all sell you a swamp or three and load your debt without regard if they are spruiikers or a firm that flogs a single strategy approach to "wealth building" (Or debt building !). There are also many great ones too. It can be difficult to split the sharks from the good guys. Generally speaking the PC community will refer you to good ones as PC tends to weed out spruikers and sharks. My tip : Stay away from free seminars. They generally offer more harm than good.

    I would take Shahins advice and seek a broker first (he is very good !!) to determine how your finances fit in this changed market. Then when you have this understood it should assist you to define your plans around affordability and servicing levels etc.

    Also check your proposed plans with a tax person so you understand the impacts of your choice etc.
     
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  6. Mavis

    Mavis Well-Known Member

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    Thanks Paul, great tip. I have just been in touch with a broker.. and shall go from there :)
     
  7. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    I think the broker should be the first point of contact as there is no point in paying for legal or tax advice if you are unable to buy anything.
     
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  8. Luke T

    Luke T Well-Known Member

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    Very honest advice Terry
     
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