Engage Experts When Investing in Property
Now that you have finalised your property investment strategy, you need to determine which experts to engage to assist you.
Australians love property! Just as most people wouldn’t seek advice from friends about heart surgery if they weren’t a surgeon, it is important to realise that the same level of awareness should apply when investing hundreds of thousands of dollars in property.
It’s therefore important, that you understand that risk mitigation is factored into establishing a property portfolio and that engaging experts is part of the process.
Investors should think of property investing as a business – where your team of experts all form part of the success of that business. Independently, they help you to maximise the investment opportunity, minimise tax and/or risk, while collectively they combine their expertise to increase your success multi-fold.
You can save yourself an enormous amount of time, stress and money by engaging licensed and qualified property experts. The returns you will gain from their expert advice and access to industry resources will ultimately save you time and thousands of dollars in the long run.
If you were building a house, you would need expert advice to ensure the foundations, concrete, frame, bricks and mortar were sound and kept your house standing strong and upright. There would be significant consequences if you found out the concrete was too thin and the mortar too weak AFTER the house has been built!
The same applies when engaging experts to help you during the property buying process. After you have purchased the property, it’s often too late for these experts to help.
As you can see in the chart above, you need different experts to be engaged at different stages, and some of them need to be engaged simultaneously. The chart shows you will usually need up to nine professions to ensure your property transaction is sound – and all your experts will play a very important role.
Neglecting to engage these experts could cost you thousands of dollars and cause much heartache.
As with any large investment or business, you should seek out the best experts available who specialise in working with home buyers and investors to successfully buy a property or build a portfolio.
As a home buyer – because you need to understand the complexity of buying property and the many ways things can go wrong, so that you can obtain the best possible outcome during your property buying journey
As an investor – because you need to step into the future with them and consider all of the implications – how big you want to build your portfolio, what type of properties you will buy, which strategies you will implement and who will benefit financially and when – so that they can provide the correct advice, planning and structuring in advance.
They can help you as follows;
- Licensed Buyer’s Agent (Advocate) is an independent advisor who can carry out due diligence and source, assess and negotiate to buy your property; reducing risk and removing the workload from you. If the property is going to auction, they can develop a buying strategy and do the bidding for you, so you can be sure to get the best outcome.
- Mortgage Brokers can assist you to secure the best loan with not just the best rate, but the best features to suit your needs.
- Conveyancers/Solicitors can assist you to reduce the risk associated with buying your property by scrutinising the contract of sale and advising you about the contract’s legal terms and clauses and any changes you should request.
- Building and Pest Inspectors can assist you reduce risk by assessing what structural or pest problems may exist at the property which could cost you thousands of dollars to repair or rectify.
- Insurance brokers ensure that you have the right policy in place to meet your lender’s requirements, and protect your investment in the process.
Why engage these experts in advance? Because after the purchase, it is TOO LATE!
Some of the article content is extracted from the book Property Prosperity – 7 Steps to Buying Like an Expert by Miriam Sandkuhler © 2013, with the author’s permission