5 reasons why as a property investor you need a Financial Planner that specialises in property investment
-By guest blogger Sarah Rogers, Principal Financial Planner & Property Investment Adviser of Profolio.
Many years ago now, before I even worked in the finance world, I was a property investor and I was looking for someone that could give me advice around that and also how my properties fit into my overall plan. After going to a couple of Financial Planners I realised they weren’t able to help me with my full financial picture including properties, and didn’t share my excitement around investing in property. If anything, they tried to talk me out of it.
Back to the current day, and more property purchases later, Profolio is here, and aims to fill the gap in the market property investors have been screaming out for.
Your team of experts are the most important people in your financial life. This includes your Accountant, Lawyer, Mortgage Broker, Financial Planner, and of course Buyers Agent. You need to ensure your team is working together and working towards the same common goal; supporting you. You need to be very selective when building your team and ensure you choose professionals that specialise in areas that are important to you, like property investment.
Each team member above is looking at different areas of your life and finances. An Accountant looks to save you tax, a Lawyer looks to protect you in case something goes wrong, a Buyers Agent looks to help you buy more properties, and a Mortgage Broker helps you get the loan through for a property. But your Financial Planner should be the one that brings that all together. They should be working with you at least annually and setting goals for the future that include all aspects of your financial life. As an example, if your Financial Planner is only looking at your superannuation and you’re focusing on building your property portfolio, the advice they give might not match what your overall goals are.
Keeping you on track
A Financial Planner that specialises in property investment can analyse the performance of your property portfolio in the same way that they analyse your shares or superannuation. Then together with the rest of your team they can tell you when you are ready to purchase more properties and can make sure your portfolio is doing what you wanted it to.
There’s three stages of investing in property, the growth stage, the hold stage, and the wind down stage. A good Financial Planner will be able to plan with you right from the start, with the end in mind. They will work with you on how you can use your properties most effectively to fund your retirement and give you the cashflow that you need to stop working.
A Financial Planner knows and understands your long term goals, so they can help with the best way to structure finances with that in mind, whether you want to purchase as many properties as possible, work out which one to pay off first, or what to do with the money you have made. A good Financial Planner who understands property can walk you through all of these situations.
Protecting you to minimise risk
With property investment there are so many variables; the tenants could leave, they could wreck your house, natural disasters could occur, or there are things that could affect you personally like relationship splits, losing your job or becoming sick or injured. Borrowing to invest in property is risky, however with the right advice you can mitigate that risk by ensuring you have emergency funds, the right insurance, and other protection methods. A specialist Planner can cover off all these bases.
For all Property Mavens’ clients, we will offer a complimentary Goal Discovery session AND a Strategy session, valued at over $660. This is over two appointments where we uncover where you are now, what your goals are, and then discuss strategies
for you to meet those goals.