We are thinking about buying an investment property. My accountant suggested the following line of action with associated costs. Are these costs reasonable for this type of consultation?
Any advice would be appreciated.
Step 1
A 1 hour meeting with yourself to discuss the purchase of the property(ies)
– whose name or what entity the property ies) could be acquired in
– to what extent the property(ies) will be negatively geared
– your wife’s position (ie. working, level of income)
– discuss what level of income/expenses we can expect for each property(ies)
Cost: 1 hour meeting = $475Step 2
Preparation of calculations of net rental position, and eventual capital gains for each entity/name the property(ies) could be acquired in.Cost: 2 hours of calculations including discussions with you = $620
Step 3
Assisting you to make a decision as to whose name/which entity to acquire the property(ies) in, and your actual acquisition of the property(ies)
Cost: Brief discussion = $150wow, expensive!
which State are you in?
One accountant i spoke to in Melbourne who was quite knowledgeble about investing property strategies, only charges about $150 per hour meeting.Not just expensive. You’re being ripped off. You can basically get all your answers for free on this discussion board.
The depth of experience from contributors is quite astounding. Best of all, all are genuine in trying to help out where possible.
So Andrew, don’t be afraid to ask a question, regardless of how basic or stupid it may sound.
I’m with trueblue on this one. Through the scenarios up here and chat about them. You will leran heaps and save heaps. Also check out another accountant. $475/ hour I would want a chauffer limo pickup.
Enjoy
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(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinHave to agree with the mob, you should be able to find a great accountant for <$150/hr. They will probably be more useful too. Had an accountant for my company once that was into big fees and fancy offices, but dumped them pretty quickly.
You often find that expensive accountants are into looking good and managing their billings, rather than helping you.
I’ve had an accountant in Canberra for two years now who is excellent, works from a home office with two paraprofessional staff. She does my company, personal and trust accounts at $132/hr.
You will find all professionals most useful if you try to understand as much about their field as possible. This does not mean studying law or accounting, but DO the following simple tasks:
– keep track of your expenses using a spreadsheet, log book, quicken, MYOB or (free) gnucash. Have a good idea which income or expense goes under which headings – flag those you’re unsure about. Your accountant will relate to you on the level that your at. If you give them a shoebox full of receipts, they’ll be flat out just completing your tax return – and too busy to help you make money!
– Understand as much tax law as possible, as well as picking up ideas from fellow investors. This forum is an excellent start. Do not take unprofessional advice as gospel, but do ask your professionals about any interesting ideas you pick up.
– Ensure your advisors understand your level and attitudes. Encourage them to suggest new structures or tax arrangements. Assess all ideas against your goals – probably income, less tax and protection.
– Think about where you will be in the future. Start developing the skills you will need. If you can afford to I suggest having a company and a trust just to learn about them. But don’t leave yourself short of cash (and forsaking investments) in doing so.
– Weigh up the long vs short term advantages of your investments. Holding investments in the name of a high income earner might be best for the first few years, but what happens when the depreciation drops and rents rise? Trusts and companies normally make better long term structures. Consider this maybe from property#3 onwards.There’s plenty more too!
crikey!dump the accountant!90% of all that stuff you can do yourself.i am on my fourth ip,and what i usually do is research my location/price/return/growth,do rough calculations of viability and if i decide it is a goer i book one hour with my accountant to confirm or modify my plans.for this she charges nothing.she reasons that it comes back at tax time.her bill for my tax each year is around the $800.00 mark.
joffThanks for the overwhelming consensus. While I want as much feedback from this forum as possible (and I am amazed at how much information there is here) I still want to have an accountant cross the t’s and dot the i’s and help with our specific case.
We are in Perth – can anyone recommend a good accountant?
Thanks.
I think it’s fair to say about accountants, just as any professional group, that if you want to pay peanuts, you’ll end up with monkeys.
Perhaps ‘value’ is a better question to ask, and not ‘cost’.
As for finding a great accountnat, Steve McKnight prepared a free report a while ago on this topic. I’ve left instructions on how to download it at https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=1458
Brent
hi andrew,
i am from perth as well.i was wondering which areas are you looking into for an IP?
thanks,
Andrew,
Perhaps try FS Profrssional partners. They are on the corner of charles and scrborough beach road.
They sepecialise in investment properties.
David Femia
Femia Property Group
Property Investment Consultants
http://www.femiapropertygroup.com.aucheers david
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