- Case07Participant@case07Join Date: 2010Post Count: 8
I am new on here and new in the world of Property Investing but would like peoples thoughts and opinions on a few questions i have.
Firstly i am stuck on the decision of what route to take next,I have a deposit saved and boarding which is great for saving but i am wanting to buy my first IP but am unsure of what too do next,should i be looking for a Financial Advisor,Morgage Broker or an Accountant and if so what questions should i be asking these people to find the right one to suit me.One contributing factor to wanting to get into the IP market is to reduce my income tax.
Thanks in Advance Case07Jamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
Congrats on the decision to delve into the world of property.
It can be a scary time for first home buyers – the process can seem confusing and it feels like there's so much to learn.
As a mortgage broker, this is obviously going to sound biased, but I think your first step should be to consult with a good mortgage broker. One that will explain the process to you, provide you with sound advice, answer your questions promptly and make your first purchase a hassle free experience – you also need to feel comfortable dealing with them.
The mortgage broker will also be able to analyse your current situation, determine how much you can borrow and source you the best deal for your circumstance. An investment savvy broker will also ensure your finances are set up correctly from the start (avoiding cross collaterisation of properties to help you build your portfolio without the hassle that crossing loans can bring – this is a more complex concept and something that you don't need to worry too much about right now).
A financial advisor, and I don't want to appear to be generalising, is probably not going to steer you towards investing in property – they don't get paid a comission on the investment property you buy.
Speaking with an accountant will help. However, as for the mortgage broker, it's important to find an accountant that has a sound understanding of property investing.
JamieCatalystParticipant@catalystJoin Date: 2008Post Count: 1,404
Ok first getting into the IP market to reduce your income tax is the WRONG reason.
That should be the last reason.
If you are reducing your income tax it means you are losing money.
Do LOTS more reading to find out how to MAKE money from property.
The more money you make the more tax you pay. I love when I don't get a tax return it means all my properties are paying themselves off.LHParticipant@lhJoin Date: 2010Post Count: 97
Good luck with your investing.
Firstly, as a mortgage broker, I'd always suggest coming and chatting with us first
Some of the questions you should ask a broker are:
* Will they give you full disclosure on their income they receive from servicing you
* What added value & Integrity do they have?
* If a broker represents any lender/s, they should:
1. Provide clear reasons for recommending these products
2. Disclose financial information so the borrower can assess any potential conflict of interest
* Do they exceed minimum qualifications?
* Do they practice what they preach?
When it comes to property investing, there are many different goals that will help you decide what you want to do:
*Are you after higher capital growth or a higher income yield (your desire to reduce your tax suggests negative gearing and therefore capital growth)?
*Do you want to add value to the property or simply buy and hold?
*Do you want to buy in the city or country?
*Do you want to get additional tax benefits through depreciation (helps determine older vs newer property)?
*What are your plans with the property long term?
If you live in the Melbourne area, I run workshops on first time investing that you might find useful. You can access the information for these from our website.Case07Participant@case07Join Date: 2010Post Count: 8
Thanks everyone will definately be looking out to find a Morgage Broker sometime soon.
Catalyst i didn't say getting into the IP market to reduce my tax is the main reason just another reason but yes i am always reading,listening to peoples opinions and trying to take in as much as possible.Thanks again everybody for your input.vonnyMember@vonnyJoin Date: 2010Post Count: 16
I’m new to all of this too. My current and FIRST project is a 4 unit development.
It can all seem so overwhelming, but i’m learning so much from each new person i talk with and info I read. I’ve figured out that you sometimes just need to gather all the (good and true) information you can and in the end decide for yourself and sometimes even just go with your instincts… not necessarily copy what others have done.
I’m also findiing that as long as i go into all the meetings with confidence and self esteem then it doesnt really matter that i am not a big tycoon (YET) haha
GOODLUCK… ENJOY THE RIDE!!!!