Investing successfully requires planning and the right team. Investing successfully requires planning and the right team.

When you are contemplating investing in either shares or property you need to plan carefully and treat it as a business. Business owners know that they can have the best ideas in the world, however without the right staff it may fail. Likewise, if you are going to be a successful investor or trader it is also critical to have your own experts to advise you. The great benefit is that you do not need to hire full time staff, allowing you to select the best people with the greatest expertise in their field to assist you.

The first professional to appoint who will be at the forefront of any investment strategy it is important to appoint a mortgage broker with a strong knowledge of investing. Although there are a lot of mortgage brokers only a handful specialize and understands investing and fewer still when it comes to commercial and construction finance. Often the overall success of an investor will be maximized by the way the strategy is financed. For a good broker will look at your income and work out what you can afford to borrow. They will work hand in hand with both you and your investment strategy experts to work out your before and after position. In many cases they may well recommend less than what the bank is prepared to lend you. Your team members should always be on your side and look after your interests.

The next professional to appoint to your team is a first class property accountant. A quality accountant will assist you establish the correct structure and help manage your business effectively for you. A top tier accounting firm should have an understanding of how to maximize your deduction. They will formalize all the claims that you will need to make to the tax department. Along with the depreciation schedule there are a number of other expenses that you can claim such as advertising for tenants, body corporate, land tax, gardening, and Real Estate agents fees and of course interest, just to name a few. An accountant without suitable property knowledge could well be costing you thousands of dollars. So the accountant that you choose is critical to your overall success. If your account does not invest, or does not understand structures, it may be time to change.

You will also require a solicitor, someone with the experience to fully understand not only the most detailed contracts but also be able to handle the most difficult of problems, should they arise. Many people today choose to use conveyance companies. They normally have the skills to deal with a straight forward transaction however if a problem arises you will need to involve a solicitor. If you are purchasing an off the plan property the contracts can be extremely detailed and require far more scrutiny than a vendors statement for an established property.
Plus if you are involved in a development project it will be the solicitor working hand in hand with your accountant who will establish the trust structure for you to acquire a development site.

If you are investing in property then the next person on your team is a quantity surveyor. Their role is to provide the depreciation schedule that will allow you to make claims against your tax. A good quantity surveyor will know how to claim the maximum possible depreciation for both the replacement cost of the building and fixture and fittings. They are the only profession recognized by the tax department to write a depreciation schedule. Without a depreciation schedule you may be missing out on a large amount of tax deductions. In partnership with your accountant they should when processing your tax return, pick up if you have not been maximizing your claims. Providing you order a depreciation schedule you can make back claims for up to the last four years.

As an investor, it is important to manage your risk. Many people in Australia are under insured. We know that around 1 million dollars invested will produce an income of around $50,000 per annum. What that means is that if you have less than that in life cover and acquired assets, you may well leave your loved ones with a major short fall in the event of your early death. Income protection is another important product, for it is well and good to invest, however if you became ill and could not work, how would you pay for your investments? Income protection will in most case cover around 70% of your income until you are 65. These are just a few of the ways a good insurance specialist will assist you with a first class risk management strategy.

Finally it is helpful to have a mentor to guide you, especially if you are looking to invest in another state or country. Remember having the right team can make a big difference to you overall investing experience.