Let me tell you from experience, hiring professionals is definitely worth the investment. Despite all my years of acquiring knowledge and experience as a property investment tradie, I still discover challenges and questions that I don’t always have the answers to.
Personally, I’ve always believed that if I’m the smartest person in my own ‘A-team’, then it’s time to find some new expertise to add to the team. Keep learning!
On the go? Here’s 30 seconds of key take outs:
- You will be more certain of achieving success in the property investing trade if you build a team of experts around you.
- There are plenty of generalist service providers to choose from when you start building your team of experts, but you need to find professionals that have specifically chosen to specialise in property investing.
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Build a team of experts around you
When you’re looking to get started in the property market, or even if you’re already in and building on your property portfolio, you’ll need to surround yourself with a team of licensed professionals.
Here’s the expertise you need around you.
Your property A-team: Real estate agent
You’ll need a real estate agent to transact each property purchase. Find an agent that you feel you can build a good relationship with. You’ll need to be comfortable in sharing your aspirations and goals with them so they understand what it is you want to achieve. Your real estate agent will be your property expert.
Real estate agents specialise in different areas. Align yourself with one who specialises in investments. Before you connect with a real estate agent, make sure you know what your property goals are and how much you can afford.
Here’s how to spot a real estate agent that is a specialist in working with investors. They will:
- Be respectful of your time and will bring the deals to you based on your property investment criteria.
- Know regional and local area market conditions intimately.
- Assist you right through the property transaction, from purchasing the property to sourcing good tenants.
And the great news is this expert comes into your team at no cost to you, as it is the vendor (the owner of the land) that pays them.
Your property A-team: Property manager
If you’re in the Defence Forces and living a typically mobile lifestyle, you’ll need to have a professional real estate agent with property management expertise to manage your investment. This A-team member will need to have the expertise and experience to find good tenants and manage the risks associated with tenancy and landlord agreements. They will be your eyes and ears, liaising with your tenant and looking after your investment.
These guys are the glue that holds your investment together. They’re the ones that screen tenants and assess whether they can afford to pay the rent. Your property manager will also look after back ground checks with references, police checks and entry condition reports. They’ll also schedule and carry out routine property inspections. One of the skill sets you need from this A-team mate is multi-tasking. From my experience, a lot of women are good at property management because of their ability to multi-task well.
Here’s how to spot a property manager that will look after your investment well. They will:
- Screen tenants, collect rents and sort all things related to managing your property.
- Answer telephone calls and emails from tenants, freeing up your time.
- Always be working to reduce your risk, with minimal cost to you.
- Help you to have the right level of insurance in place in case tenants do the wrong thing.
- Facilitate any dispute resolution that may arise with your tenants.
- Take the hassle out of property management, at minimal cost to you.
Get yourself a good property manager and your property investment trade just got easier.
Your property A-team: Mortgage broker
Your mortgage broker can be the difference between a deal done, and a deal that won’t happen. Some brokers specialise in working with ‘Mum and Dad’ PPR (Principle Place of Residence) borrowers. Your A-team broker needs to bring investment expertise to help you finance the property by finding the most effective loan to meet your investing goals.
Here’s how to spot a mortgage broker that will find solutions to help you reach your goals. They will:
- Do all the leg work for you including chasing the banks and finding the best deals going around.
- Present you with the best options available through different lenders, based on your requirements.
- Not cost you a cent as the lender pays your broker, not you.
- Assist you through the process of gaining finance and refinancing.
Your property A-team: Conveyancer or Property Lawyer
A conveyancer is a specialist solicitor with expertise in ‘real property’ law to help you cover off all the legalities, and minimise your risk. Property laws are State based, so you’ll need to have a conveyancer licensed in the state you are looking to buy a property in can vary. In New South Wales for example, a Licensed Conveyancer is just as qualified as a Solicitor to undertake the legal work involved in a conveyancing transaction. Costs vary but expect to pay anywhere from $800 to $2,000.
Here’s how to spot a conveyancer or property lawyer / solicitor that will help you meet your legal obligations and minimise your risk. They will:
- Check contracts and amend if required.
- Manage communications between the seller, real estate agent, mortgage broker and any settlement agents.
- Protect your interests so that the seller doesn’t take advantage.
- Keep you up-to-date with key milestones throughout the purchasing process.
- Help you overcome any unexpected legal problems that might pop up.
Your property A-team: Quantity Surveyor
You’ll need a Quantity Surveyor to help you estimate construction costs for depreciation purposes and produce a depreciation schedule.
When you’re investing in property, a depreciation report is an essential tool to take advantage of the tax deductions available for new property. Under the Australian Taxation Office (ATO) rulings, depreciation is divided into Plant and Equipment items (Division 40) and Capital Works (Division 43). A good Quantity Surveyor can ensure you are receiving the maximum possible deductions under these rulings and provide a summary of both methods of depreciation available – Diminishing Value and Prime Cost – over 40 years.
Here’s how to spot a Quantity Surveyor that will help you maximise the advantages of tax deductions available to you for new property. They will save you thousands of dollars by:
- Inspecting your property and then producing a 40 year report for your tax agent or accountant to claim all your tax breaks.
- Being the qualified experts in producing depreciation reports while meeting the requirements of a regulated industry.
- Bringing extensive and varied knowledge of ATO rulings.
Your property A-team: Accountant
A tax accountant that specialises in investment property and all that is claimable will help maximise your cash flow, by minimising your tax bill. An accountant that specialises in property investment is a massive bonus. When you interview potential A-team members, make sure to explore an accountant’s areas of expertise in property investment.
If you can find an accountant who gives advice on portfolios, optimal structures for holding property and managing the taxation aspects of holding or selling property, even better! Big ticks – that’s what you’re looking for.
Here’s how to spot an Accountant that will help you maximise your tax flow. They will:
- Keep you abreast of property tax changes.
- Help you claim everything you are entitled to with regards to property investment.
- Give you advice on property structures, selling, and reducing tax advice.
- Help you bounce ideas around with a goal to reduce your tax, legitimately.
Your property A-team: Financial Planner
A well thought out, documented financial plan will help you get a clear understanding of your financial goals, how you’ll reach them, and how you’re tracking. A financial planner will have a holistic view of your finances, from personal insurances through to diversified investments.
These guys are the go to people for a holistic approach to your finances from insurances, to asset and money management through to retirement strategies.
The best approach is to choose a financial planner who you get along with, enjoy talking with and someone who is squared away!
Here’s how to spot a Financial Planner that will help you optimise your overall financial position and future. They will:
- Help you formulate a savings plan and show you how to reduce your tax.
- Assist you in formulating a detailed holistic financial plan incorporating all forms of wealth creation and protection.
- Assist you in taking steps to execute your goals.
- Choose the right mix of investments according to your life cycle goals, and financial position.
Your property A-team: Builder
You need to find builders with a balanced approach to quality, cost, design and specifications. The overall quality needs to be fit for purpose and attractive, but not over the top. Don’t underestimate the value of building a good network of land developers Australia wide too. These contacts can get you in the know as to what good property investments are about to hit the market.
This is your wealth building team and it can be a mission to put this team together. It takes experience to get the right person people to fit in with you, your goals and your personality.
#StandEasyTip: Make sure that even as your knowledge grows, that the team you have around you is always smarter than you if you want to keep growing your wealth.
7 questions to help you choose your property investment A-team
Here are some simple and effective questions to help you select your A-team:
- Share some examples of how you’ve put your client’s needs above your own.
- How do you charge, and what will I get in return for investing in your services?
- Are you licensed? And what other credentials do you have?
- What type of clientele do you specialise in servicing?
- Do you have a client case study you can share with me, that is similar to my situation?
- What is your approach? How are you different from your competitors?
- How much face to face, telephone or email contact will there be? Will I be working with you directly, or your team?
Are you ready to start talking to a qualified team?