Yo Yo Yo – what’s happening peeps!
Not sure why I decided to talk like that – must be because I’ve been watching “Any Given Sunday” again, one of my favourite sports movies.
Basically it’s a take on a fictional NFL team with an all-star acting cast.
Al Pacino as the old school head coach, Jamie Foxx as the narcissistic rising star QB, Cameron Diaz as the hot-headed young franchise owner.
It gives a pretty darn good insight into the trials and tribulations of professional sports.
But one key message which I came out of it is that, without a supportive and cohesive team, the individual fails.
Exactly how it relates to property investment.
Property Investing and the NFL? Say what now.
I meant in terms of team-work, of leveraging professionals with their specialist knowledge, experience and qualifications.
Don’t be a fool like me when I first started and just went out and bought something, not thinking of the next step, the next property.
One investment property won’t bring you financial freedom. Most likely neither will two.
That’s why you need to build a successful team around you to make property investing work for you.
So here’s who I think should be on your team as you take the field:
Surely you should be well aware by now that if you want to earn any money in Australia – the tax man will be looking over your shoulder as you do it?
Property investing is no different, that’s why an accountant is absolutely critical once you start purchasing investment property.
Don’t just choose any old accountant – choose one who understands your personal circumstances and can advise you on the best and most proper way to achieve your financial outcomes.
In a country where the highest marginal tax rate is 47% – you’d have rocks in your head if you don’t try to structure your taxes efficiently.
Property investment is a game of finance rather than a game of property – you think it’s easy after one or two, but wait until you try and expand your portfolio further.
The lending institutions calculate your borrowing capacity based on your current income and expenses as well as the future income and expenses from the property.
That’s why you need an experienced broker or lender on your team, someone who is thinking two or three steps ahead even as you purchase your first property.
The easiest way to tell if they are worthy of consideration is if they also are a property investor with a multi-property portfolio. This way, they should be able to advise you on how they did it themselves.
A good broker/lender will source the lending products to finance your investments. They should also be reviewing your portfolio on a regular basis to ensure you are travelling in the right direction.
Guys, trust me – having an experienced and knowledgable solicitor/conveyancer who can handle the complexities of a real estate transaction is worth the price they charge.
Many contracts of sale and associated clauses are not written for the likes of you and I, no mere mortal – they are written for the express purpose of binding you into their dark magic.
That is why it is essential to have a wood elf, I mean solicitor who can review and advise on all legal documents prior to your autograph placed on them.
Mistakes are costly, waste time and most of all downright stressful when they occur.
Can you imagine making one associated with hundreds of thousands, sometimes millions of your hard-earned?
Tell me, when was the last time you were across the Residential Tenancies Act?
Yeah same, but last Tuesday for me.
LIAR! You’ve never been across it – you see, smart investors never underestimate the value and contribution of a good property manager.
For they source the best tenants, conduct the application process and make sure your best interests are protected.
Then like an industrious worker bee, they will carry out regular inspections and report back to you with written and photographic feedback.
In fact, they will manage all repairs and maintenance issues and to top it off, they will forward the rent to you!
Check out my earlier post regarding property management here.
There are also other benchwarmers you should have on your team – good real estate agents to contact you for the best and early deals, an insurance specialist to ensure your assets are protected and if you’re time poor, a buyer’s agent who acts in your interests to secure the most optimal property for you.
End of the day – property investment is a team sport, sure you might be El Kapitano, the Quarterback, the big Easy, the Jet, the… you get it – but like any champion team, they are made up of a team of champions.
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P.S. As always, the posts are opinions and thoughts of yours truly only – remember that every person’s circumstances is unique so seek specialised advice!
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