Two (or more) heads are often better than one, and a team of experts can help you research the market and streamline the experience of being a property investor.
Broker – a key role
A mortgage broker can play a central role in your investment team, offering valuable insights on the mortgage market. That’s important because the loan you select can impact the profitability of your investment and your cash flow.
Your broker can quickly and efficiently help you choose the investment loan that is right for your needs and goals, and bring good advice to the table in terms of your deposit requirements or the possibility of being able to use the equity in your home as extra security for a property.
With access to key data such as current market values, past capital growth and current rental yields in a variety of suburbs, your Aussie Broker can also offer industry information that can put you in a strong position to negotiate.
Solicitor/Conveyancer – legal expertise is essential
Buying property involves a number of legal documents and processes, and hiring a conveyancer or solicitor can spare you the stress of trying to deal with it all yourself.
Your legal rep can review the contract of sale so that you understand all the terms and conditions. Once the sale is agreed on, your solicitor or conveyancer will complete the necessary paperwork to transfer ownership of the property into your name.
Accountant – get your tax right
Many of the expenses relating to an investment property can be claimed on tax. But it’s important to follow the Tax Office rules.
A qualified accountant can help you identify which expenses you can claim as a tax deduction, and how much rental income you need to declare in your tax return each year.
As long as your accountant is a registered tax agent, they can also help you complete and lodge your tax return, and this fee is normally tax deductible.
Financial planner – expertise on money matters
A licensed financial planner can help you develop personal goals to work towards, strategies to achieve them, and recommend suitable investments. It can be useful information if you’re planning on buying a rental investment.
Buyer’s agent – find the right property sooner
If you’re pressed for time, or you’re thinking of buying interstate, a buyer’s agent can track down suitable properties, inspect them and prepare a shortlist of places for you to visit, potentially saving time. If you’d like to make an offer on a property, the buyer’s agent can handle the negotiations or bid at auction on your behalf.
In terms of the cost, buyer’s agents generally charge a fixed fee or a commission – usually around 1% to 3% of the purchase price of the property.
Real estate agent – harness local knowledge
A selling agent must act responsibly and ethically with both the buyer and seller, however bear in mind that their main responsibility is to the owner of the property. That said, selling agents can play a helpful role among your team of experts.
Not every property is openly advertised for sale – some are sold ‘off market’. By talking to a variety of local agents and letting them know what sort of property you’re looking for, you may be able to tap into this hidden property market.
The selling agent could also offer property management services, and be able to provide estimates of the rent a property could earn as well as explaining local vacancy rates.
When it comes to putting your investment team together, asking friends and family members for referrals, can help you find skilled professionals that you feel comfortable working with.
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- Chapter One : Things to consider before investing in property
- Chapter Two : Determining where to invest
- Chapter Three : Investment Properties by Dwelling Types
- Chapter Four : Finance for Your Investment Property Purchase
- Chapter Five : How to Invest in Property
- Chapter Six : Adding Value to Your Investment Property
- Chapter Seven : Positive and Negative Gearing
- Chapter Eight : Getting Your loan
- Chapter Nine : Selling your Investment Property