Our finance advisor says to cut back on our spending to be able to purchase properties later. We have $20000 sitting in our account and I would like to purchase something now. What should I do? Also he suggests we knock down our one investment property and put up two smalled courtyard houses instead. We would be without investment income while they were being built (if council approved) not sure what to do. Any advice would be useful.
Confused.[
]hi
i’m suprised that you financial advisor is encouraging property often they are anti, as they don’t understand it and don’t study it as part of their course.
it’s very hard to make comments obviously without knowing your full picture, ie your own financial position, and where you own your property, how much it is worth what it would cost and what it would sell for.
if i was you i’d do some sums and see how it looks.
i assume your financial advisor knows your full financial circumstances ? i would look into his idea as i said do some sums, perhaps build some units, sell some off the plan ???
but hey, i’m not really sure whats going on for you.
personally i’m keen on property (i own 29 houses)but i wouldn’t be buying in this market (in australia).
regards westanHi Havenleigh Park,
Westan is incorrect in saying that Financial Advisors do not study Real estate as part of their education requirements. It is included in units of study on Wealth Creation and investment strategies. Most people think they don’t study this topic because advisers push other investment products from which they will earn a commission. Generally, advisers are tied to a “Dealer Group” usually an Insurance company or a bank, and obviously they have to sell a product aligned to that dealer.Knowing what to do, even after an adviser gives his OPINION is still a challenge. In the end it is really all up to the client. I am a qualified financial adviser, however I have chosen not to do this professionally anymore as it is almost impossible to be TRULY independant. I have learnt that Cash is the King when it comes to investing. Others will go for Growth. If your aim is to quit work ASAP, growth will only help in a booming market,as we have just witnessed in property since about the beginning of 1996. However, we are now poised to enter a period in which the reverse (Contraction of prices) is almost certain to occur. Focus on Cash, as it will be coming in for ever…….(if the numbers were crunched properly) and if your research (Due Diligence)is rigorous.
Good luck…..remeber…..you are in control…..NOT an adviser…[]Listening to a financial advisor is fine but you need to listen to more than one eg attend seminars read book and find out more info and then you can make an informed decision!! Does this adviser have 130 properties? Does he have a big possitive cash flow per month? If yoes then maybe but otherwise keep looking and you will find exactly what you are looking for!! I have!
Leah
Here is a good saying, “if you want to be a milionaire, speak to some one who is already a millionaire”
Now lets say if you want to own more IP talk to someone who owns many IP and ask him or her how they did it.
This way you are gettin the information from someone who knows what they are talkin about.
Hi havenleigh park
I agree with Leah on this one, our “first” accountant told us to buy neg geared for the tax benefits, at this stage we had already been researching on this forum and decided he was the wrong accountant for us.[8] in the corner pocket!
We went to a finacial planner aligned with a major insurer and we got told not to buy property until all of our risk managment was taken care of, he ment buy more insurance [xx(]
Then we went to the best accountant as reccomended on the forum. By this time we were more aware that it was up to us to make the decisions his job is to advise on structure and other strategies.
So always be in control of your own situation, I am really pleased for you that you have got this forum to get true unbiased and sincere advice.
Do as Westan said and do the numbers yourself and determine what you feel the most comfortable with.
And just out of interest when we took our first positive deal to the bank about 4 ths ago, they were very hmmm, well we’ll lend this time, and last week when we took our third positive deal to them our lender was nearly springing out of his seat saying hey did you know that your rent is nearly double the monthly payment, cashflow positive properties are the way to go. We figured the guy had just been to a seminar!
Cheers
Leigh K[]Carve your own path and lead the way …
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