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AS YOU HAVE gathered, BMT’s main focus is helping investors claim maximum property depreciation deductions. Yet as Chris Lang recommends, we also recognise the importance for property investors to have their own team of trusted experts in place.
These are the professionals, who will help ensure your overall success. And you get to pick the various players involved.
Anyway, here is our take on the roles you will need to fill.
1. Accountant and/or Financial Adviser
A common goal of property investing is financial reward. But you need to use your money wisely.
An Accountant will help you manage your money and advise of any tax changes you should know about, as well as help you claim everything you’re entitled to.
A Financial Advisor is slightly different and looks at your financial situation more holistically. They can help you determine your financial goals and set a realistic plan to achieve them.
Ideally, your Accountant and Financial Advisor may be one in the same, but both of these services are incredibly useful.
2. Property Adviser and Advocate
When you’re searching for your first (or next) investment property, it’s good to have an expert you can trust.
Their fees should be totally transparent, and they should have a thorough knowledge of the local market.
And also, have a deep understanding of your requirements and actively help you find your ideal investment.
3. Commercial Lawyer
There’s a lot of complicated paperwork involved in purchasing a property – including the contract of sale, mortgage documents and other paperwork related to the transaction.
It’s best to enlist the help of a qualified lawyer to handle the legal aspects for you – because they’ll help decipher any complicated terms and conditions, and cut through the jargon.
4. Mortgage Broker
Over the past year, Mortgage Brokers have been gaining market share in Australia. The 2017 Property Investment Professionals of Australia (PIPA) investor confidence survey revealed that 83% of respondents are hoping to finance their next loan via a Mortgage Broker, up from 71% last year.
If you’re looking to purchase a new investment property, it would be well worth speaking with a Mortgage Broker – to help you find the best loan product to suit your situation and your finances.
5. Building Consultant for due diligence
It’s essential that you get a full building inspection carried out before you commit to the purchase of a property.
The last thing you want is to buy a property only to later find it’s actually riddled with termites or structurally unsound.
A trusted Building Consultant will help you determine if you have a quality property on your hands; and can save you from forking out thousands on surprise repairs and maintenance, after settlement.
6. Property Manager
While some investors may be tempted to manage their own property, there are a lot of risks involved in this approach – especially, if you don’t have the knowledge or time to manage this effectively.
A good Property Manager will help you retain and secure quality tenants, will save you time, tell you of any statutory requirements and will help take some of the emotion away from the process.
As their fees are tax deductible, this shouldn’t be looked at as an unnecessary expense.
7. Quantity Surveyor
After settlement, make sure you get a Quantity Surveyor who specialises in property depreciation to prepare your tax depreciation schedule.
A specialist Quantity Surveyor is worth having on your team as they will ensure you’re claiming everything you are legally entitled to.
They will also keep on top of any tax changes so you don’t get on the wrong side of the Australian Taxation Office (ATO).
The ATO recognises Quantity Surveyors as one of only a few professions possessing the required construction costing skills, to calculate the cost of items for the purposes of depreciation.
8. A Mentor
It’s always good to have someone experienced in commercial property – who you can turn to for advice, and learn from their real life experiences.
Investing in commercial property has its ups and downs. As such, it’s comforting to have an experienced “friend” on your side to help – even if it’s just to chat about your situation and investment plans.
9. Yourself
You, personally, don’t need to be an expert to invest in commercial property. Still, it’s important to arm yourself with some basic knowledge of the market, to keep on track of how your investment is performing.
That will also give you more confidence when dealing with other professionals to ensure you’re not being taken for a ride.
You simply need to take advantage of the various books, blogs, magazines, online resources and homestudy courses.
Bottom Line: The truth is … you don’t need to go it alone. All you need do is quietly assemble your own team of trusted experts; or ask someone who can point out the right people for you.
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