I signed up to a financial advisor for the first time ever about 6 months ago.
Three weeks ago I contacted him and told him that due to family expansion my wife and I were keen to buy a bigger place, and wanted to talk to him about it. He promptly came out to visit us that week. We discussed the situation and I told him all the figures that he asked for. He promised to come back with recommendations on three buy price scenarios. These buy prices were proposed by us based on our watching the market for a while, and gauging the type of places we would be happy with.
We specifically wanted to know what he felt we could afford to spend taking into account our financial position, and for each scenario we asked that he recommend if we hold onto or sell our recently paid off investment property.
It’s been three weeks and we still have nothing back from him. At least one very nice property has gone for an amount that I’m at this stage ‘guessing’ we might have been able to afford.
Unfortunately I have very little experience in dealing with Financial Advisors, so I look to you for your opinion on whether this a reasonable amount of time?
Must admit i find it strange for an investor to approach a Financial Adviser for advice on a property scenario.
Hate to say if you were tryiong to ascertain a borrowing amount the Adviser may not have been licensed to provide Credit advice and therefore that could be the reason he had not come back to you. This is the domain of a mortgage broker.
Have you paid for such advice as he wont earn any form of remuneration otherwise.
As i say sorry i am slightly lost as to what you have asked him for.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
it sounds like your asking one of the follow?
1. How much you can afford to buy?
2. Where and what to buy??Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
That was my thinking Michael.
Again not sure if a Fin Planner is licensed to offer an answer to the first part.
Cheers
Yours In Finance
Richard Taylor | Australia's leading private lender
Sorry for the confusion!
A bank has said that they are prepared to lend me 800k. I'm thinking a place around the value of around 600-700k would be sufficient to live in. I know where I want to buy and what type of place, so not looking for advice on those.
Specifically what I want advice on is:
– whether I would be financially better off to sell my investment property, or to hold onto it and borrow a larger sum.
– what amount he thinks I would be comfortable borrowing (taking into account my lifestyle, expenses etc.)
Are those queries not the realm of a Financial Advisor?
Cheers,
PeterWhy you would pay off your investment property when you want to upgrade your PPOR is beyond me (or didn't you think you would want to upgrade?).
So now you are in a position where, if you want to keep the IP you will have a PPOR loan (non deductable) while the IP is getting no deductions.
Really depends on how much you need to borrow after selling PPOR to upgrade and what the IP is doing. Is the CG good? Do you expect it to continue? Will the new mortgage be an issue (regarding payments).
Just crunch the numbers for if you borrowed more or if you sold the IP. Then look at future gains/losses of having/not having the IP.Pays to think ahead.
I may have made a poor decision by paying the IP off. To be honest I don't know much about investing – probably why I have since signed up a Financial Advisor!
Appreciate all the advice, but all I really wanted to know from this forum is whether three weeks too long to be waiting for advice.
For a simple question + request as yours i would say it is…
It’s not like it;s a complex question.But my feeling is the Fin adviser don;t see the $$$ benefit in doing this deal so he/she is dragging it along till he has nothing else better to do ( as they make more money from advising and selling life insurance and super products lol) , Not morally or professionally the right thing to do! but we do live in a cruel world!
To be honest Peter; if all you want to know is how much you can afford financially because you want to upgrade your PPOR; then any good broker would be able to work this out with you. it’s a question we Brokers get ask all the time ” can i afford to buy this place/upgrade?”
Because really you know how much your outgoing is, you know what you spend your money on and how your lifestyle is like…so with a bit of common sense + planning and number crunching and advice from a banker/broker/Fin planer or accountant ; you will get there.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
yes!!
Can any one tell me what a ppor loan is.
Principle Place of Residency (your home)
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Shape wrote:For a simple question + request as yours i would say it is… It's not like it;s a complex question. But my feeling is the Fin adviser don;t see the $$$ benefit in doing this deal so he/she is dragging it along till he has nothing else better to do ( as they make more money from advising and selling life insurance and super products lol) , Not morally or professionally the right thing to do! but we do live in a cruel world! To be honest Peter; if all you want to know is how much you can afford financially because you want to upgrade your PPOR; then any good broker would be able to work this out with you. it's a question we Brokers get ask all the time " can i afford to buy this place/upgrade?" Because really you know how much your outgoing is, you know what you spend your money on and how your lifestyle is like…so with a bit of common sense + planning and number crunching and advice from a banker/broker/Fin planer or accountant ; you will get there. Regards MichaelGood post – nailed it in one. The MB probably won't charge you either!
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
I agree. The Fin advisor will probably tell you to sell your house and put it into managed funds (commissions stay till June next year I think).
That sort of advice should take 10 min and could be answered on the spot.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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