I was looking back over some old forum posts across a range of topics and a question came to mind.
Do you prefer to do everything yourself, or are you happy to engage a professional to do the work for you?
Be it tax accounting, selling your property, developing your land, arranging finance, renovating… etc
What path do you follow?
Why do you choose one over the other?
Is there a financial benefit in your choice?
Is there a risk the professional will not follow your instructions, or that you will not cover an important point due to inexperience?
I remember a Council meeting in Melbourne's leafy eastern suburbs a number of years ago where a Doctor stood up and ripped into the Council Planner over a modest proposal for a dual occupancy development.
The good Doctor was incredulous that Town Planning and Architecture should be so complex and difficult to understand to a layperson.
Amongst the ranting and personal attacks, he demanded the repeal of the Planning Scheme and for Architects to be compelled to explain their complex drawings in terms he could understand.
The Council Planner simply turned to him and said:
"Dr XX, I assume you don't expect me to understand Medicine do you? That's what I would turn to you for. So please don't disrespect my profession, as I have 15 years experience doing the job I love"
On this occasion, I think she has a wonderful point.
What do you think?
Have a great day,
I am a big believer in using professionals, but not blindly. It helps to try and understand something about the area if possible, if not seek advice from different people and weigh it up.
One good thing about using a professional, is that if there is a bad stuff up, their professional insurance may give you some recourse, if you do it all yourself, you have nothing.
Good point Darryl,
I hadn't considered the benefits or advantage of our PI insurance over an individual's position.
Which leads to another question..
What factors influence your choice of one professional over another? – Is it purely on cost? Results? 'The vibe?'
When we established our practice, we were fortunate to have access to one of the 'Big Four' Accounting firms. The added value we have received from this relationship far outweighs the additional cost involved.
Thanks Darryl, happy Australia Day!
All the best,
When dealing with property, it has always started with trying to find someone who has some idea about. Unfortunately not many accountants and lawyers do. And even when they do, a lot don't advertise the fact, so hard to find out. Much easier now with most having websites and a lot being on forums etc.
I always prefer dealing with people who have been there and done it themselves.
Happy Australia Day to you to
I've seen several people set up trusts incorrectly. They thought they may save money by doing it themselves but each time it has resulted in tens of thousands of dollars in lost tax, legal advice etc to fix.CatalystParticipant@catalystJoin Date: 2008Post Count: 1,404
The problem is "you don't know what you don't know". Lots of people "think" they know it all.
The trick is knowing where to draw the line.
Terry has a good point. With important things such as structure, tax etc you need to know your limit and hire a professional. I know some people with multiple properties that do their own tax. To me that's crazy because laws are changing all the time. Same as the legal profession.
Same with tradies. I'm a DIY renovator but I know our limit. Sometimes it's even more cost effective to hire a tradie.
Good point there Catalyst, good luck with your renovations!
Your comment reminds me of Rumsfeld's famous quote:
"There are known knowns;
there are things we know we know.
We also know there are known unknowns;
that is to say, we know there are some things we do not know.
But there are also unknown unknowns
– the ones we don’t know we don’t know."
All the best,
BreeceJamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
I take the same approach as catalyst. I'm a bit of a weekend warrior when it comes to DIY but I'm fully aware of my capabilities so have no issue with getting the pros in for reno work that I'm not capable of doing.
There's also an opportunity cost I need to consider when carrying out renos – I enjoy doing some stuff myself but outside of business and family commitments, it's difficult to find time so paying others can be a good option.
As for accountancy, legal services, ect – I leave that to my trusted professionals.
JamieCatalystParticipant@catalystJoin Date: 2008Post Count: 1,404
That's why I got you to do mine Terry.Catalyst wrote:That's why I got you to do mine Terry.
Well, I hope it won't be needed for many years. And, I wonder who you really are Catalyst????alpakkaParticipant@alpakkaJoin Date: 2012Post Count: 5
I think you make some good points!!
You need toi spend money to make money and by utilizing the services of professionals you can potentially save yourself lots of money down the track and also find better opportunities.
As you said, they key is knowing where to draw the line! It's also important to understand exactly what these professionals will do for you and ask the right questions.
Once you fully understand what they are doing, it's much easier to make strategic decisions..