Property investment is a rewarding and financially beneficial investment to make, provided that you know what decisions to make and when. Your chances of success are going to be greatly enhanced if you have a good mentor and a solid team behind you – but who are the people that you need, and what roles do they play? This is a quick and easy guide to follow to ensure that your property investment team are right for you!
A property mentor
This person is going to be absolutely vital for your success. A good mentor for you is going to be someone who you know has had success in property investment using the same or a similar strategy to you. For example, if you’re looking to invest in residential property you probably wouldn’t seek the help of someone who has made serious inroads in learning about commercial real estate. To find your mentor you can start to think about the people among your friends or acquaintances who you know have had success in property investment. If they’ve done something that you think you’d like to do, then think about how to get the skills that they have for yourself!
If you can’t think of anyone among your friends, consider asking someone who works in the property investment industry, and if you really think you don’t know anyone, then get creative and use tools like LinkedIn to find people. Other options for finding a mentor include going along to meet-up groups or other professional meetings in your local area. You’ll find that once you find someone who you think could mentor you, they’ll most likely be flattered to be asked for their advice and will share it willingly with you.
Your solicitor needs to be able to read all of your documentation and contracts and make sense of it all relating to your needs, so it’s best if you choose someone who has experience with property investment. You’re going to be needing them to advise you about any clauses or exceptions – or anything at all that is of importance – so it’s vital that they know what you want to achieve.
Your financial planner is so vital to your success, because they’re going to structure your finances and ensure that all of your purchases and financial decisions are going to allow you to continue to borrow. Your financial planner is also going to advise you on your financial position as well as talk to you about superannuation, tax benefits and anything else related to your finances and property investment. Note though, that financial planners aren’t authorised to offer property advice, because property isn’t considered a ‘financial product’ as covered by the financial services license. You’ll be getting general financial advice from your financial planner, but if they steer you towards investing in a particular property investment product (like an off the plan development), be wary as they may be gaining a commission from the advice they give you.
Your accountant will help you to gain the highest possible tax benefits, and will work to ensure that you’re meeting all of your tax requirements as well. Ideally they’ll have a solid understanding of property investment and may even be investors themselves.
Your broker needs to be able to manage your loans and will know how to manage the lending process to make sure that you can continue to borrow. They’ll have a good network of contacts and will be able to negotiate on your behalf to get the best possible outcome for you.
Just remember that if at any point you realise you know more than someone on your team – it’s time to replace them!
Who can help you create your property investment plan?
Ultimately, you want to work with an expert to define your goals and then work out how you’re going to achieve them. Your mentor or a buyer’s advocate is going to be someone with the skills and experience to structure your plan, and they can also map out your goals and ensure that every property that you buy matches up with your goals. If you find yourself asking the advice of lots of experts you might find that you become overwhelmed with information as everyone has a different opinion. If you have chosen a good buyer’s advocate or mentor you’ll find that they have sufficient information to help you.
Keep It Simple
If your mentor can help you find a good property, and your broker has your loans sorted, then why consult anyone else? These are professionals who don’t stand to gain anything from advising you incorrectly so you know you’re in good hands.
How Your Team Will Help You
Your mentor is going to advise you, and may ultimately play a role in developing the rest of your team – as they may have a great network of people and can recommend professional service people to help you.
Your whole team will be coordinated by you and your mentor, so make sure that you have a good working relationship with them as it will be vital to ensuring your continued success.
If you don’t have a property mentor yet – think about getting in touch with us to help you get started. Our team of buyer’s advocates can help you to get started on your journey to property investment success.