Good question.
I’m thinking I’ll go see a financial advisor shortly to see what the best plan of attack is regarding mortgage offset accounts and then also query whether it would be better putting a granny flat on my ppor to increase rent or to sell as soon as I’ve renovated it…then I’ll run that advice past my accountant for good measure.
Jimmy you are talking about financial advice. It is always good so you are clearing on structuring you asset purchase. Also it is good idea to have a pest and building inspection completed.
Also always sign a contract to buy subject to finance, so you can be sure that you have the opportunity to walk away or renegotiate price if the bank valuation comes in under the contract price.
DaOne | Oras Finance - Your Local Mortgage Broker
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Hey Jamie, I was referring to advice prepared in the form of a statement of advice from a AFS licensed adviser. Not Google-advice
Jimmy86 | Future Assist SMSF Specialists - Bris | Melb | Syd
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I wouldn't bother seeing a financial planner for mortgage advice. They can't provide credit advice unless licensed to do so. Some will also push you towards overpriced off the plan properties or managed funds too. There's some good ones – but a lot of terrible ones. Like any industry I suppose.
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]
My experiences with financial advisors is that you wouldn't ask them for advice on property related issues or solutions unless they are a property investor with a decent portfolio or have been in the past . Just like I wouldn't ask my accountant or solicitor or conveyancer or my builder on what I should do with property. Unless they are involved as a property investor themselves and that means owning multiple properties not just 1 or 2.
If you sit down and actually look at the material that's study in level 1,2,3 etc of financial courses that give a person the qualification of financial advisor. It's very broad and limited. That's not to say that there are some exceptional advisors out there. But the majority are trained on a generic syllabus that promotes shares or managed funds or another investment that offers commissions. Financial advisors get very limited commissions (if any) from a property transaction so you can see that they could have a conflict of interest between investment pathways.
– mortgage broker is your best bet for discussing offset accounts. Which are pretty basic and most loans (should ) come set up with them or the option to have one.
My thoughts are similar to yours Jamie. The majority of financial advisors are sales persons
Wow this thread is really growing! A little off topic now but keep it up guys.
@nigel Kibel – I totally agree that when you a putting down hundreds of thousands of dollars that due dilligence is very important and there are many people who just think its a good idea to invest so they go out and buy an "investment property"
@The Dark Knight – Sounds like your have really grown your portfolio, well done on that! Also, I would have to agree with Jamie M that you need a break.
@heinz57 – I've also struggled with this question myself, I've found it difficult to break into other areas especially ones which are far away because I don't know the particular market that well or it become difficult to drive there every weekend to learn more about the area. So I tend to keep coming back to the one that I know really well because I know immediately whether a property is worth buying or not.
@jimmy86 – To be honest, I've never actually sought financial advice but am doing fine without it. I think I would have to agree with the others that unless you have a financial planner who specialises in property and has their own property portfolio they are likely to not really understand.
No problem.
A good financial adviser would look at your whole situation. Not just try to find you the best loan like a mortgage broker.
@jamie M – true, however on the flip side, I highly doubt a mortgage broker would ever advise someone not to take out a mortgage… where does their income come from? and a Mortgage broker cannot give any Financial Advice, unless licensed to do so.
It is unfortunate that a lot of people have negative experiences with Financial advisers. I think in a lot of people's minds the negative press and experience with 'property spruikers' has been misconstrued for 'financial advice' and financial advisers have been caught up in this.
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Jimmy86 | Future Assist SMSF Specialists - Bris | Melb | Syd
http://www.futureassist.com.au/setupansmsf
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We are Licensed Financial Planners and Mortgage Brokers.
I have to say it never amazes me how many clients who have been to see FP's in the past for so called advice have had managed funds or direct property shoved down their throats usually as Jamie mentioned from mates of theirs who in turn pay them a nice fat commission.
The other issue i have is so many of these advisers have minimal net worth themselves.
They are advising clients to get into a property yet haven't paid off their own PPOR or purchased their first let alone 10th IP.
As far as advising someone not to take out a mortgage i hate to say this happens all too often.
Under NCCP if you do not feel the client can support the repayments or indeed the product is not suitable we say sorry we cannot help.
Sure they may end up going to another Broker but unlike a Financial Planner the advice we offer in this regard is total free.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Jimmy86 wrote:A good financial adviser would look at your whole situation. Not just try to find you the best loan like a mortgage broker.
@jamie M – true, however on the flip side, I highly doubt a mortgage broker would ever advise someone not to take out a mortgage… where does their income come from? and a Mortgage broker cannot give any Financial Advice, unless licensed to do so.
I have to knock back business all the time. If it can't be done or the client can't afford it – I tell them so and provide them with some pointers on how to improve their situation to place themselves in a position whereby they can obtain finance down the track.
I get your point though – and I'm sure there are some brokers that will get it done by any means necessary. Even if it's not in the best interest of the borrower.
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]
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