The first step in building a prosperous property portfolio is building your team of experts who can work with you, offering relevant and timely advice across the spectrum of fields you need to successfully buy a property, whether it be your first or your tenth. This includes a mortgage broker, an accountant or financial planner, a lawyer, a property manager, and most importantly, an excellent property strategist. Each member of your team will have their own separate areas of expertise and access to their different social networks of counterparties.
There is a lot of information to understand and action when it comes to property investment, and while some is fairly basic and easy to grasp, much will require the help of a skilled professional. Let’s take a look at the different people who will need on your team.
A Great Accountant
An accountant is key when it comes to handling the finances within your portfolio and they are an important asset from the get-go. When it comes to tax, a proactive accountant is crucial for minimising costs and depreciation, negotiating income splitting and ensuring the maximum return on your investments.
Your accountant will have a deep understanding of tax law and can use this legislation to your benefit; they will also analyse your cash flow and advise you on how to structure yourself financially.
Key tip: the name of the game is to build wealth, minimising tax may be part of the picture but it isn’t the main goal, don’t be afraid to pay tax in certain circumstances, it means you must have made money!
A Good Mortgage Broker
You cannot invest in property without financing, therefore a good mortgage broker is vital to the ongoing success of your property portfolio. A broker acts as the link between yourself and potential lenders. They can advise you on how to structure your loans to help you leverage into multiple properties, which is extremely important when looking to diversify your portfolio.
A broker will have a wide breadth of knowledge of lenders and loans that are available and will identify the options most suited to your needs. A mortgage broker will also make the loan application process run as smoothly as possible.
Key tip: ask about their background, did they work at a bank in the appropriate area previously and know exactly how loan application officers assess applications, or have they had deep industry knowledge over an extended period of time, through different property cycles as banks adjusted their lending criteria.
An Experienced Property Manager
An experienced property manager will ensure your peace of mind when it comes to the actual day-to-day management of your property portfolio. They essentially look after the tenancy of your properties and everything that goes with it: rent, accounts, leases, inspections, disputes, issues and paperwork.
If you develop a good relationship with a property manager you can have them manage your portfolio as it grows; having all your property managed under one roof can be very helpful.
A Discerning Lawyer
Your team will also need an experienced lawyer who can deal with all of your legal requirements – preferably someone experienced in property investment. Never underestimate the importance of an astute and trustworthy lawyer who can help you understand the key elements of contracts, who can navigate the fine print and who can help you avoid costly mistakes within them.
They will also be there to help with estate transitions, and protect against any unforeseen legal disputes such as divorce or bankruptcy.
An Excellent Property Strategist
Your property strategist is perhaps the most important member of your team. They are your key adviser as to where the best value may be found and will be able to analyse information and provide guidance across a broad range of sectors within the realm of property.
Your strategist will advise you on everything from the early stages of an investment: choosing a location, analysing the market, negotiating leases; to diversifying your portfolio: financial analysis of new investments and assisting with the sale of assets.
Your property strategist will guide you through every stage of your portfolio’s growth and will have a vested interest in your investments thriving. An excellent strategist will reduce any risks with your investment right from the start, and will save you money and help you avoid mistakes in the long run.
With your team assembled you will be ready to start one of the most rewarding journeys of your life as work towards your goal, whether it be financial independence or just buying your dream home. If you have any questions regarding property strategy, please feel free to get in touch.